Newsman Co. made the following errors in counting its year-end physical inventories:

2012 ............................................................. $ 60,000

overstatement 2013 ................................... 108,000

understatement 2014 .................................. 90,000 overstatement.

As a result of the above undetected errors, 2014 income was

a. understated by $18,000.

b. overstated by $198,000.

c. overstated by $18,000.

d. understated by $198,000.