The beginnings inventory of the current year is overstated by ` 5,000 and closing inventory isoverstated by ` 12,000. These errors will cause the net income for the current year by

• A. 17,000 (overstated)
• B. 12,000 (understated)
• C. 7,000 (overstated)
• D. 7,000 (understated)