Carla Vista Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors:

2020 2021

Ending inventory $57000

overstatement $66000

understatement

Depreciation expense 19000

understatement 33000 overstatement

Assume that the 2020 errors were not corrected and that no errors occurred in 2019. By what amount will 2020 income before income taxes be overstated or understated?

$76000 understatement

$38000 overstatement

$38000 understatement

$76000 overstatement