A wholesale dealer who uses his fleet of vehicles for delivering his goods to customers reports his net profit for the year without accounting for depreciation of his vehicles. The effect is:
(a) Gross profit as well as net profit is overstated
(b) Gross profit is not affected but net profit is overstated
(c) Gross profit as well as net profit is understated
(d) Gross profit is not affected but net profit is understated