Joe Pickard, a shoemaker, reports his profit without accounting for depreciation of machinery. As a result: (a)

Question:

Joe Pickard, a shoemaker, reports his profit without accounting for depreciation of machinery. As a result:
(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

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