Your answer is correct. 575 During its year-end physical inventory count, Tire Track Corporation forgot to count tires it had stored outside its warehouse in a trailer. As a result, the company understated its ending inventory by $7,000. Assuming that the company did not detect and correct this error, what is the impact of the error on assets, liabilities, and shareholders' equity at the end of the current year? At the end of the next year? Assets Liabilities Current Year Next Year Understated No impact No impact No impact Shareholders' equity Understated No impact