2 p Lawrence Inc. is a calendar-year corporation. Its financial statements for years 2 and 3 contained the following errors: Year 2 Year 3 Ending inventory $50,000 overstatement $80,000 overstatement Depreciation expense $20,000 understatement $40,000 overstatement Assume that the Year 2 errors were not corrected and that no errors occurred in Year 1. By what amount will Year 2 income before income taxes be overstated or understated? $30,000 understatement O $70,000 overstatement $30,000 overstatement $70,000 understatement