Question: What is the effect on the current year's stockholders' equity if a $ 2 5 , 0 0 0 understatement error to ending inventory in

What is the effect on the current year's stockholders' equity if a $25,000 understatement error to ending inventory in the prior year was not corrected? Total stockholders' equity would be
overstated by $25,000 in the current year.
understated by $25,000 in the current year.
correct.
overstated by $50,000 in the current year.
What is the effect on the current year's stockholders' equity if

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