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Switch Mode (SM) is a control input to the circuit to switch between addition or subtraction operations.

Adder

When SM = 0 the circuit is equivalent to Binary Adder.

A + B (bit ) XOR 0 = A + B (bit)

Subtraction

When SM = 1 the circuit is equivalent to Binary subtraction.

A + B (bit ) XOR 1 = A + invert(B (bit))

'B' input becomes inverted in this case.

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