Green Company Overstated Its Inventory by $50 Million at the End

Multiple Choice

Green Company overstated its inventory by $50 million at the end of 2018. The discovery of this error during 2019, before adjusting or closing entries, would require:

A) An increase in retained earnings.
B) A prospective adjustment in the 2019 income statement.
C) A debit to inventory of $50 million.
D) None of these answer choices are correct.