Question: Determining the Financial Statement Effects of Inventory Errors Assume the 2011 ending inventory was understated by $100,000. Explain how this error would affect the 2011

Determining the Financial Statement Effects of Inventory Errors
Assume the 2011 was understated by $100,000. Explain how this error would affect the 2011 and 2012 pretax income amounts. What would be the effects if the 2011 were overstated by $100,000 instead of understated?

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