At the end of 2022, a $13,000 overstatement was discovered in the 2022 ending inventory as reflected in the inventory records. What were the effects of the $13,000 inventory error (before correction) on the year 2022 financial statements?

A. Assets were overstated by $13,000 and pretax income was overstated by $13,000.

B. Cost of goods sold was overstated by $13,000 and pretax income was overstated by $13,000.

C. Assets were understated by $13,000 and pretax income was overstated by $13,000.

D. Cost of goods sold was understated by $13,000 and pretax income was understated by $13,000.