During the Audit of Virginia Company's 20X2 Financial Statements, the Auditors

During the audit of Virginia Company's 20X2 financial statements, the auditors discovered that the 20X1 ending inventory had been overstated by $10,000 and that the 20X2 ending inventory had been overstated by $8,000. Before the effect of these errors, 20X2 pretax profit had been computed as $100,000. What should be reported as the correct 20X2 profit before taxes?

A) $98,000
B) $100,000
C) $102,000
D) $118,000