How would each of the following inventory errors affect net income for the year? Assume each is the only error during the year.

1. Ending inventory is overstated by $3,000.

2. Ending inventory is understated by $1,500.

3. Beginning inventory is understated by $3,000.

4. Beginning inventory is overstated by $1,550.

1. Net income is overstated or understated?

2. by what amount?