Dalez Corporation prepared the following two statements of earnings (simplified for illustrative purposes): During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,530. Required: 1. What effect did this error have on the combined pretax earnings of the two quarters? 430 Understated 430 Overstated No error 2. Did this error affect the earnings per share amounts for each quarter? Yes No 3. Prepare corrected statements of earnings for each quarter. 4. Set up a schedule with the following headings to reflect the comparative effects of the correct and incorrect amounts on the statement of earnings: (Select "Understated" or "Overstated" as applicable. Leave no cells blank; select "No error" from the dropdowns if no error is recognized. Input all amounts as positive values.)