8. Dole Produce mistakenly counted $700 of inventory twice in its December 31, 2020 ending inventory count. As a result of this error:

	a.	Net income is overstated by $700 in 2020.
	b.	Net income is understated by $700 in 2020.
	c.	Assets are understated in 2020.
	d.	The error has no impact on net income or assets.

9. If the net realizable value of inventory is greater than the cost of the inventory, then the application of the lower of cost or net realizable value rule would

	a.	Not change inventory or net income.
	b.	Decrease inventory and net income.
	c.	Decrease inventory but not change net income.
	d.	Not change inventory but decrease net income.

10. Bob Corporation has 300 widgets in ending inventory that originally cost the company $20 each. Currently, the widgets have a net realizable value of only $10 each. Bob neglects to apply the lower of cost or net realizable value to the units in his ending inventory. What impact will this have on Bob's balance sheet and income statement at year end?

	a.	Assets will be overstated by $3,000 and net income will be overstated by $3,000.
	b.	Assets will be understated by $3,000 and net income will be understated by $3,000.
	c.	Assets will be overstated by $3,000 and net income will be understated by $3,000.
	d.	Assets will be understated by $3,000 and net income will be overstated by $3,000.