Please also provide a brief explanation for why it is Understated/ Overstated/ No Effect, thank you

Part C(10 marks) Assume Matheson Company is a going concern and analyze the effect of the following errors on net income for 2014 and 2015. Choose one of three answers: understated (U), overstated (O), or no effect (NE). (1 mark each) December December 31,2014 Net Income Net Income 31,2015 Failure to adjust at end of 2014 for prepaid rent (a)that had expired during December 2014. The entire prepaid rent has been expensed in 2015. (b)Did not record depreciation on Office Machines used in 2014. Correct depreciation was taken in 2015. An arithmetic error in the computation of (c)inventory at the end of 2014 has caused a $40,000 understatement in that invento d)Machinery with a cost price $500, bought in 2014, was not entered in the books until paid for in 2015. (e) Revenue has been collected in advance but earned amounts have not been recorded at the end of 2014. Instead, all revenue was recognized as earned in 2015