Question 2 Wilson Corporation (WC) was incorporated January 1, 20xl. In preparing the 20x2 financial statements, the following errors were discovered: Dec 31, 20x1 Dec 31, 20x2 Prepaid rent Unearned revenue Ending inventory $ 8,000 overstated 14,000 understated 23,000 understated $18,000 understated 26,000 understated During 20x2 revenue was deferred that should have been recognized. The deferred revenue was recognized in 20x3. The error of $35,000 has not been adjusted, nor is it included in the Unearned Revenue balances shown above. Ignore income tax considerations. a) What is the total effect on WC's net income before taxes for 20x2? What is the total effect on WC's retained earnings as at December 31 20x2