Candle Co$.$ performs an inventory court at year$-$end. The company records a ending balance of $$56,000$ for inventory on its balance sheet. During the following year, the accountant discovers that the ending inventory was miscounted, causing ending inventory to be overstated by $$2,500.$

a$.$ What is the effect of the misstatement on the income statement?

b$.$ Besides ending inventory, what was the effect of the error on the balance sheet?