Question 7 (1 point) Hanuv Corporation counts its ending inventory incorrectly in year 1, assuming no other inventory errors in future period, | 1) the error effects profitability, net income and retained earnings for year 1 only. 2) the error extends in to future years indefinitely. 3) the error will self-correct by the end of year 2. 4) the impact of the error effects the inventory account only. Question 8 (1 point) FOB means "For only Buyers". 1) True 2) False Question 9 (1 point) Foamy Suds Ltd. had a fire at its warehouse and was trying to determine the cost of the inventory lost. For the year to date, sales had been $525,000, opening inventory was $125,000, purchases to date were $318,000, and the cost-to-sales ratio is normally 60%. Inventory not damaged in the fire was $18,000. What was the cost of the inventory damaged in the fire? 1) $110,000 2) $160,000 3) $74,000 4) $124,000