Questions 17 and 18 are based on the following information: Martin Co. is a calendar year corporation. Its financial statements for the years ended 12/31/19 and 12/31/20 contained the following information. The errors are all separate errors. Ending Inventory Depreciation Expense 2019 $5,000 understatement $2,000 understatement 2020 $7,000 understatement $4,000 understatement 17) Assume that the 2019 errors were not corrected and that no errors occurred in 2018. By what amount will 2019 income before income taxes be overstated or understated? a. $3,000 overstatement b. $7,000 overstatement c. $3,000 understatement d. $7,000 understatement 18) Assume that no correcting entries were made at 12/31/19, or 12/31/20. Ignoring income taxes, by how much will retained earnings at 12/31/20 be overstated or understated after the books are closed on 12/31/20? a. $1,000 understatement b. $6,000 overstatement c. $3,000 understatement d. $13,000 understatement