in taking a physical inventory at the end of Year 1. Grant Company forgot to count certain units and understated ending inventory by $13,000. Determine how this error effects each of the following. (a) Year 1 cost of goods sold 02.11.25 Overstates Year 1 cost of goods sold. Understates Year 1 cost of goods sold. None of the above (b) Year 1 net income Understates Year 1 net Income Overstates Year 1 net incomo None of the above (Year 2 cost of goods sold. Understates Year 2 cost of goods sold. Overstates Year 2 cost of goods sold. None of the above Ich Year 2 net income Understates Year 2 net income Overstates Year 2 net income None of the above