Question: Assume the 2014 ending inventory was understated by $50,000. Explain how this error would affect the 2014 and 2015 pretax income amounts. What would be

Assume the 2014 ending inventory was understated by $50,000. Explain how this error would affect the 2014 and 2015 pretax income amounts. What would be the effects if the 2014 ending inventory were overstated by $50,000 instead of understated?

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