In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $10,000. Determine how this error effects each of the following.   (a) Year 1 cost of goods sold.   multiple choice 1 Overstates Year 1 cost of goods sold. Understates Year 1 cost of goods sold. None of the above.   (b) Year 1 net income.   multiple choice 2 Understates Year 1 net income Overstates Year 1 net income None of the above.   (c) Year 2 cost of goods sold.   multiple choice 3 Understates Year 2 cost of goods sold. Overstates Year 2 cost of goods sold. None of the above.    (d) Year 2 net income.    multiple choice 4 Understates Year 2 net income Overstates Year 2 net income None of the above.

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