Exhibit 23-5 Nan Company, Having a Fiscal Year Ending on December

Exhibit 23-5 Nan Company, having a fiscal year ending on December 31, discovered the following errors in 2010:
A collection of $\$ 12,000$ from a customer for rent related to January, 2011 , was recorded as revenue in 2010
Depreciation was under state d by $\$ 600$ in 2010.
The January 1, 2009, invento1y was overstated by $\$ 10,000$ .
The January 1,2010, inventory was understated by $\$ 6,000$
Insurance premiums of $\$ 2,000$ that relate to 2011 were expensed in 2010 when paid.
-Assume no other errors have occurred and ignore income taxes.
Refer to Exhibit 23-5.Net income for 2010 was

A) overstated by $4, 600
B) overstated by $16, 600
C) understated by $5, 400
D) understated by $5, 200