Question: Othello Company understated its inventory by $ 2 0 0 0 0 at December 3 1 , 2 0 2 0 . It did not

Othello Company understated its inventory by $20000 at December 31,2020. It did not correct the error in 2020 or 2021. As a result, Othello's stockholder's equity was:
understated at December 31,2020, and overstated at December 31,2021.
overstated at December 31,2020, and overstated at December 31,2021.
understated at December 31,2020, and understated at December 31,2021.
understated at December 31,2020, and properly stated at December 31,2021.
Othello Company understated its inventory by $ 2

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