Which of the following is a correct formula when markup is based on selling price

perhaps u want the formula for the percentage of markup, giving the cost and selling price.
..(selling price) = (cost) + (Markup)
..(selling price) - (cost) = (markup)
so,
..(markup)/(selling price)*100% = ((selling price) - (cost))/(selling price) * 100%
.. =(1 -(cost)/(selling price))*100%

The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."

Took the words right out of my fingers