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If the ending inventory for Year 1 was understated by $400, cost of goods sold in Year 2 will be: a. understated by $800. b.
If the ending inventory for Year 1 was understated by $400, cost of goods sold in Year 2 will be:
a. understated by $800.
b. understated by $400.
c. correct.
d. overstated by $400.
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