Question: If a $10,000 error understating ending inventory is made in 2020, what is the impact to stockholders equity reported on the 2021 balance sheet? It

If a $10,000 error understating ending inventory is made in 2020, what is the impact to stockholders equity reported on the 2021 balance sheet?

It is correct due to an offsetting of the errors.

It is overcorrected by $15,000.

It remains incorrect due to an offsetting of the errors.

It is partially corrected by $5,000.

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