A company's beginning inventory for 2005 was overstated by $37,000, and the ending inventory for 2005 was understated by $16,000. The income tax rate for the company is 30%. These errors will cause the 2005 net income to be
Understated by $14,700.
Understated by $37,100.
Overstated by $14,700.
Overstated by $37,100.