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A company's correct ending balance for the inventory account at the end of 2 0 2 5 should be $ 5 7 , 0 0

A company's correct ending balance for the inventory account at the end of 2025 should be $57,000, but the company incorrectly reported it as $61,000. In 2026, the company correctly recorded its ending balance of the inventory account. Which one of the following is true about the company's gross profit in 2026?
1. Overstated by $4,000
2. Understated by $4,000
3. Understated by $8,000
4. Not affected

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