Use This Information to Answer the Following Question

Multiple Choice

Use this information to answer the following question. In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
If beginning and ending merchandise inventories were ignored in computing net income, then net income would be

A) understated by $22,000.
B) overstated by $8,000.
C) understated by $14,000.
D) understated by $8,000.