Forgetful Ltd has just discovered that its closing inventory has been understated by $25,500.$

What will be the effect of this error if it remains uncorrected?

A$.$ The current year$$s profit will be understated and there will be no effect on next year$$s profit.

B$.$ The current year$$s profit will be overstated and next year$$s profit will be understated.

C$.$ The current year$$s profit will be understated and next year$$s profit will be overstated.

D$.$ The current year$$s profit will be overstated and there will be no effect on next year$$s profit.