Debit Company's $2 Million Cost of Inventory at the End

Essay

Debit Company's $2 million cost of inventory at the end of last year was overstated by $250,000.
1. What was the effect of this error on last year's reported total assets, gross profit, and net income?
2. What is the effect of this error on this year's reported total assets, gross profit, and net income?
3. What is the effect of this error on next year's reported total assets, gross profit, and net income?