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1. A small company's accountant never learned the meaning of FOB Shipping Point and FOB Destination. Consequently, the company determined its ending inventory balance in

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1. A small company's accountant never learned the meaning of FOB Shipping Point and FOB Destination. Consequently, the company determined its ending inventory balance in 2017 was understated by $6,000. What is the effect of this error on Net Income for 2017 and 2018 and Shareholder's Equity for 2018? (State the amount and whether NI / SHE was understated or overstated or no effect.) Effect on 2017 Net Income: me. Effect on 2018 Net Income: Effect on 2018 Shareholders' Equity

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