If ending inventory is understated by $8,000 in 2003, and assuming a constant 30% tax rate, then what will be the effect on retained earnings on December 31, 2047 Your answer: The 30X4 ending mained camings will be understated by $2,400. The 20X4 ending retained earnings will be overstated by $2,400. The 2004 ending retained earnings will be understated by $5,500 The 2014 ending retained cammings will not be understated or overstated. Clear answer Submit Pause test