P$6-5($Algo$)$ Analyzing and Interpreting the Effects of Inventory Errors L$06-5$

The statements of earnings for Pruitt Company summarized for a four$-$year period show the following $($amounts in thousands of

dollars$)$:

An audit revealed that in determining these amounts, the ending inventory for $2022$ was understated by $$56.$

Required:

Revise these statements of earnings to reflect the correct amounts. $($Do not round intermediate calculations. Round the final

answers to the nearest dollar amount.$)$

Did the error affect the cumulative net earnings for the four$-$year period?

Not affected

Affected

What effect did the error have on the income tax expense for $2022$ and $2023?($Do not round intermediate calculations. Round the

final answers to the nearest dollar amount.$)$