Miller Co. discovered that in the prior year, it failed to report $40,000 of depreciation related to a newly constructed building. The depreciation was computed correctly for tax purposes. The tax rate for the current year was 40%. What was the impact of the error on Miller's financial statements for the prior year? Understatement of net income of $24,000. Understatement of depreciation expense of $24,000. Understatement of accumulated depreciation of $40,000. Understatement of accumulated depreciation of $24,000.