If Inventory at the End of the Year Is Understated

If inventory at the end of the year is understated by $105,000, what will this error cause?

A) An understatement of net income for the year by $105,000
B) An overstatement of gross profit for the year by $105,000
C) An overstatement of inventory for the year by $105,000
D) An understatement of cost of goods sold for the year by $105,000