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Use the following information for questions 15 through 16 Friend Co biegan operations on January 1, 2011 Financial statements for 2011 and 2012 contained the following ros Dec 31 2011 Dec 31, 2012 Ending Inventory $792.000 cerstated $936.000 understated Depreciation des $504.000 victated In addition on December 31, 2012 fully depreciated equipment was sold for 5172,800, but the sale was not recorded at 2013 No conections have been rede for any of the restore income tax consideradom 15. The total effect of the erroes on ends 2012 et income is overstated by $1.108.800 understated by $1.900.000 understated by $1,555.200 overed by 5763200 16. The total effect of the trots on the balance of Friend's retained earnings at December 31, 2012 s understated $1.440,000 5604800 51.108,800 $1.612.800