Biden Corp. reports on a calendar-year basis. Its 2004 and 2005 financial statements contained the following errors:

2004 2005

Over(under)statement of ending inventory ....$(10,000) $ 4,000

Depreciation understatement ................. 4,000 6,000

Failure to accrue salaries at year end ...... 8,000 12,000

As a result of the above errors, 2008 net income would be

a) overstated by $4,000

b) overstated by $24,000

c) overstated by $22,000

d) overstated by $16,000