PPP and ERC eligible wages

I just read something in the 941-X instructions that threw me for a loop about the eligibility of wages for the two reliefs.

Let's make some assumptions: 2020 ERC so $10k limit per person per year, PPP loan of $50k given 7/1, payroll for one employee of $0 3/12-6/30 and $70k 7/1-12/31, no implications of PPP 2019 lookback wage limits, no considerations of non-payroll expenses for PPP forgiveness in this example.

I've been going off the understanding that PPP forgiveness would cover $50k and then on top of that $10k would be eligible for ERC treatment and the last $10k would be excess wages not covered by any benefit. Or, if you like, the first $10k is ERC-eligible, and the excess $60k is PPP-eligible (with $50k forgiven). Either way you look at it the benefits add together if you're using "different dollars to apply".

The 941-X instructions say:

The eligible employer can claim the employee retention credit on any qualified wages that aren't counted as payroll costs in obtaining PPP loan forgiveness. Any wages that could count toward eligibility for the employee retention credit or PPP loan forgiveness can be applied to either of these two programs, but not both.

Now, by the first sentence, I think that's saying exactly what I said above. But there's a way of parsing the second as separately determining the eligible wages for the two benefits and only choosing one when they overlap, so:

• For the ERC, the first $10k is eligible and the last $60k is excess
• For the PPP, the first $50k is forgivable and the last $20k isn't
• Thus the $10k in wages that "could count toward eligibility for the ERC or PPP loan forgiveness can be applied to either of these two programs, but not both." And we end up with $50k forgiven through PPP and $20k with no benefit.

I know IRS instructions aren't a definitive source, and I know my example is a little outlandish, but do you see what I'm getting at? Or am I majorly overthinking it?