An Asset That Costs $4,000 on January 1, 20x1, Is

An asset that costs $4,000 on January 1, 20x1, is being depreciated on the basis of a 10% straight-line rate.On January 1, 20x2, an ordinary repair of $600 was debited to the asset account and also was depreciated in the same way.As a result, 20x2 pre-tax income was:

A) Overstated by $540.
B) Understated by $60.
C) Overstated by $600.
D) Understated by $600.