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What is the effect of a $50,000 overstatement of current year ending inventory on the current year ending retained earning balance? a. Understated by $100,000.

What is the effect of a $50,000 overstatement of current year ending inventory on the current year ending retained earning balance?

a.

Understated by $100,000.

b.

No effect.

c.

Overstated by $50,000.

d.

Need more information to determine.

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