QUESTION 20 Use the information below for the following twe questions: River Inereported table income of $85,000 and totalanding assets of $500,000 for 2010. Rivers later determined that purchases were understated by $25,000 in 2010 and inventory was understated by $10,000 at the end of 2019. What are the corrected amounts for taxable income and total assets for 20197 Net Income Total Assets (0 $100,000 $490.000 $70,000 $510,000 () $100,000 $510,000 (M) $120,000 $400,000 00 QUESTION 21 Assume that the errors in 2019 were not corrected and no additional error occurred in 2020. What is the effect of the 2010 errors on cost of goods sold (COGS) for 2020, net income for 2020, and retained earnings for 2020? COGS Net Income Retained Eaming () Understatement Overstatement Overstatement Understatement Overstatement No affect (W) Overstatement Understatement Understatement (iv) Overstatement Understatement No effect COM