Correcting accounting errors in income statement

Steps:

• Reported profit $2450.
• Error 1: Carriage inwards $250 recorded as carriage outwards; this misclassification overstates operating expenses by$250 without including it in COGS, but net profit unaffected as total expenses same.
• Error 2: Increase in provision $120 treated as addition to gross profit; this means the expense was wrongly included in COGS, reducing profit by$120, but correct treatment is operating expense after GP, so net unaffected; however, assuming double deduction in draft, profit understated by 240.
• Overall, errors cause under statement; but calculation leads to ambiguity in net effect.

Not enough information.

Final answer: B