3) A company reported income before taxes of $14,700 for the year ended December 31, 2018. In reviewing their accounts after the books had been closed, you discover that the following errors had been made in compiling the financial statements: Understatement of ending inventory.. Understatement of depreciation expense Understatement of advertising expense $400 $540 $220 The correct amount of income before taxes that should have been reported for the year ended December 31, 2018, is: A) $13,540 B) $13,980 C) $14,340 D) $14,780 E) $15,420