Will Company's Independent Accountant Discovered That the Ending Inventory for 20X2

Will Company's independent accountant discovered that the ending inventory for 20X2 had been overstated by the company by $2,000. Before the correction, what was the effect in the 20X2 statement of earnings because of the overstatement of the ending inventory?

A) Pretax profit understated by $2,000.
B) Cost of goods sold was overstated by $2,000.
C) Pretax profit was overstated and the cost of goods sold was understated by $2,000.
D) Pretax profit was understated by $2,000.