In taking a physical inventory at the end of Year 1. Grant Company forgot to count certain units and understated ending inventory by $10.500. Determine how this error effects each of the following. (a) Year 1 cost of goods sold. Overstates Year 1 cost of goods sold. Understates Year 1 cost of goods sold. None of the above (b) War 1 net income. O Understates Year 1 net income Overstates Year 1 net income O None of the above. (c) Year 2 cost of goods sold. Understates Year 2 cost of goods sold. Overstates Year 2 cost of goods sold. None of the above (d) Year 2 net income. Understates Year 2 net income O Overstates Year 2 net income None of the above