Dexter, Inc. is a calendar-year corporation. Its financial statements for the years 2007 and 2006 contained errors as follows: 2007 2006 Ending inventory $3,000 overstated $8,000 overstated Depreciation expense $2,000 understated $6,000 overstated 11. Assume that the proper correcting entries were made at December 31, 2006. By how much will 2007 income before taxes be overstated or understated? a. $1,000 understated b. $1,000 overstated c. $2,000 overstated d. $5,000 overstated