Presented below are the comparative income statements for Watson Industries for the years 2018 and 2019. prior to the information provided in the bulleted list below. Assume no taxes exist. 2019 5660.000 Sales Cost of Sales Gross Profit Expenses Net Income 230.000 180.000 2018 5600,000 390.00 210,000 170.000 $ 40,000 Retained Eamings, Jan. 1 Net Income Dividends Retained Eamings. Dec. 31 $117.000 50,000 (15.000 $152.000 S. 89.000 40.000 (12.000 $112.00 In 2019, the company decided to switch depreciation methods from sum-of-the-years-digits to the straight-line method. The assets were purchased at the beginning of 2018 for $ 150,000 with an estimated useful life of 5 years and no salvage value. In 2019, the company discovered that the ending inventory for 2018 was understated by $13,000. Prepaid expenses of $4,000 were omitted in 2018 In the revised financial statements, the 2018 Net Income would be Select one a $57,000 b. 567,000 c. 523,000 d. 560,000 e 549,000