Measurement basis

In a country where the economy is growing and prices are subject to regular increases, which of the
following are false when using historical cost accounting compared to current value accounting?
1. Historical cost profits are understated in comparison to current value profits
2. Capital employed which is calculated using historical cost is understated compared to current value
capital employed
3. Historical cost profits are overstated in comparison to current value profits
4. Capital employed which is calculated using historical costs is overstated compared to current value
capital employed
A (1) and (2)
B (1) and (4)
C (2) and (3)
D (2) and (4)

My question is about that am I right about this question??
prices are increased from 100 to 10 and if we consider assets with the historical cost we sell it for 100 at COS is 10 and our gross profit will be 90. is it right?? it was also belong to liability but with the opposite effect.?