Question 34 (Mandatory) (2 points) Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that Berkshire has a 25% income tax rate and that this was the only error it made. What is the effect of the error on Berkshire's 2021 income statement? Cost of goods sold is understated by $450,000. There are no errors in the 2021 income statement. Net income is understated by $450,000. None of these answer choices are correct