As Jakarta Imports Inc. was finalizing its 2020 statements, it discovered that an accounting error caused the net income of 2019 to be understated by $10.4 million. Retained earnings at December 31, 2019, as previously reported, stood at $335 million. Net income for 2020 was $86 million, and 2020 dividends were $45 million. Required Requirement 1. What impact will this prior-period error have on Jakarta Imports' 2020 income statement? Choose the correct answer below. OA. The prior-period error adjustment does not affect net income for 2020. The error results in decreasing the ending retained earnings balance for 2019 by $10.4 million. OB. The prior-period error adjustment overstates net income for 2020 by $10.4 million. The error results in decreasing the 2020 net income by $10.4 million. OC. The prior-period error adjustment understates net income for 2020 by $10.4 million. The error results in increasing the 2020 net income by $10.4 million. OD. The prior-period error adjustment does not affect net income for 2020. The 2019 retained earnings balance is also not affected. OE. The prior-period error adjustment does not affect net income for 2020. The error results in increasing the ending retained earnings balance for 2019 by $10.4 million. mpact w wer bel Required - X derror a 1. What impact will this prior-period error have on Jakarta Imports' 2020 income statement? derror a 2. What is the impact on the 2019 financial statements? d error a d error a d error a gs balance for 20 ncome by $10.4 m income by $10.4 m gs balance for 2019 Ask my instructor Print Done Clear all Check