Can some please explain. I don't know how to get to the answer and why is it understated

Multiple Choice Question 61 Your answer is correct. Pharoah Co. began operations on January 1, 2017. Financial statements for 2017 and 2018 contained the following errors: Dec. 31, 2018 $239000 understated Dec. 31, 2017 $218000 overstated 130000 overstated Ending inventory Depreciation expense Insurance expense Prepaid insurance 94000 understated 94000 overstated 94000 overstated In addition, on December 31, 2018 fully depreciated equipment was sold for $47200 but the sale was not recorded until 2019. No corrections have been made for any of the errors. Ignore income tax considerations. The total effect of the errors on Pharoah's 2018 net income is understated by $598200. understated by $380200. overstated by $191800 overstated by $409800