During a Year-End Evaluation of the Financial Records of the Matthew

Multiple Choice

During a year-end evaluation of the financial records of the Matthew Company for the year ended December 31, 2014, the following was discovered:
Inventory on January 1, 2014, was understated by $6,000.
Inventory on December 31, 2014, was understated by $18,000.
Rent of $20,000 collected in advance on December 29, 2014, was included in income for 2014.
A probable, reasonably estimated contingent liability of $30,000 was not recorded as of December 31, 2014.
Net income for 2014 (before any of the above items) was $250,000. The corrected net income, ignoring income taxes, for 2014 should be

A) $300,000
B) $208,000
C) $212,000
D) $218,000