Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2019 and 2018 contained errors as follows: 2019 2018 Ending inventory $3,000 overstated $8,000 overstated Depreciation expense $2,000 understated $6,000 overstated Assume that the proper correcting entries were made at December 31, 2018. By how much will 2019 income before taxes be overstated or understated?

Select one:

a. $1,000 overstated

b. $1,000 understated

c. $2,000 overstated

d. $5,000 overstated