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1 .Given the following Ending Inventory errors for the Portland Company: Year Ending Inventory Error 2020 Overstated $40 2021 Understated $30 Indicate the error in

1.Given the following Ending Inventory errors for the Portland Company:

Year

Ending Inventory Error

2020

Overstated $40

2021

Understated $30

Indicate the error in the following items:

Select one:

a.

2022 Net Income

12/31/21 Retained Earnings

Overstated $30

Understated $30

b.

2022 Net Income

12/31/21 Retained Earnings

Understated $30

Overstated $30

c.

2022 Net Income

12/31/21 Retained Earnings

No error

Overstated $70

d.

2022 Net Income

12/31/21 Retained Earnings

No error

No error

e.

2022 Net Income

12/31/21 Retained Earnings

No error

Understated $70

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