Question: After preparing the draft financial statements, it was discovered that stocks costing $15,000 were double-counted. Which of the following statements describes the effects of the

After preparing the draft financial statements, it was discovered that stocks costing $15,000 were double-counted. Which of the following statements describes the effects of the error? 1. Net profit will be overstated by $15,000. 2. Liabilities and Owner's Equity will be not be affected.

1) Statement 1

2) Statement 2

3) Both statements

4) None of the statements

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