USU following to answer questions 17-18: Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: Ending inventory $3,000 overstated $8,000 overstated Depreciation expense $2,000 understated $6,000 overstated 17. Assume that no correcting entries were made at December 31, 2010. Ignoring income taxes, by how much will retained earnings at December 31,2011 be overstated or understated? A) $1,000 understated C) $5,000 understated D) $9.000 understated. E) None of the above. 18. Assume that the proper correcting entries were made at December 31, 2010. By how much will 2011 income before taxes overstated or understated? A) $1,000 understated B) $1,000 overstated C) $2,000 overstated D) $5,000 overstated E) None of the above. 19. Kaniper Company has the following items at year-end: $20,000 Cash in bank 300 Petty cash 5,500 Short-term paper with maturity of 2 months 1,400 Postdated checks Kaniper should report cash and cash equivalents of A) $20,000. B) $20,300. C) $25,800. D) $27,200