At the End of the Accounting Year, December 31, 20x4

At the end of the accounting year, December 31, 20x4, adjusting entries were not made for wages that had been earned but not yet paid, $1,800, and rent revenue of $1,400 that had been earned but not yet collected.As a consequence, the 20x4 amount of pre-tax earnings was:

A) Understated by $3,200.
B) Overstated by $3,200.
C) Understated by $400.
D) Overstated by $400.