During the audit of Montane Company's 2014 financial statements, the auditors discovered that the 2014 ending inventory had been overstated by $10,800 and that the 2014 beginning inventory was overstated by $6,400. Before the effect of these errors, 2014 pretax income had been computed as $107,000. What should be reported as the correct 2014 pretax income?

$102,600.

$113,400.

$124,200.

$89,800.