Question 1 ye (30 pts.): You find numerous errors in the inventory system that affected net income in prlor ars. Assume taxes are 40%, Year 1 is the first year of the firm's operations. Assume the error was covered in Year 5 and that years 2, 3 and 4 will be restated to provide comparative financial statements. Relevant information is as follows Year 3 Year 4 250,000 300,000 Year 1 Year 2 500,000 500,000 250,000 Net Income (reported) Ending Inventory balance (reported) 200,000 Ending Inventory balance (corrected)) 100,000 200,000 300,000 100,000 400,000 400,000 (1) What entry would correct the cumulative error in retained earnings at the start of Year 2? (2) What would be the restated net income amounts for year 3 and year 4? (3) What is the opening balance for retained earnings in year 4 after these corrections? (4) Briefly describe how your answers to (1)-3) would differ if the issue was based on a change from LIFO to FiIFO that caused the same impact to earnings (don't recalculate -describe changes)