1. On January 3, 2007, a company discovered that a tract of land (used as a parking lot), purchased for $20,000 cash on January 1, 2005, was debited in full to the Office Building account. The building was being depreciated over 20 years (straight-line) with no residual value. The income tax rate was 40 percent. The 2007 correction of prior years' error (net of income tax) was a:

   		A. debit of $1,800
   		B. credit of $1,800
   		C. debit of $1,200
   		D. credit of $1,200