Final answer:
The 2012 income before taxes will be overstated by $3,000, as a result of the ending inventory being overstated by $12,000 and the depreciation expense overstated by $9,000. This answer not aligning with the options provided suggests a potential error in the question or the options.
Step-by-step explanation:
To determine the effect on 2012 income before taxes, we need to adjust the 2012 figures for the stated errors.
First, the ending inventory was overstated by $12,000 in 2012. An overstated inventory would cause the cost of goods sold (COGS) to be understated, meaning that the income before taxes would be overstated by the same amount.
Second, depreciation expense was overstated by $9,000 in 2012. An overstated depreciation expense would cause the income before taxes to be understated by that amount.
Therefore, the combined effect of these errors on the 2012 income before taxes would be an overstatement of $12,000 (inventory error) minus an understatement of $9,000 (depreciation error), resulting in a net overstatement of $3,000. This is not one of the provided options, which suggests there might be an error in the question or the options presented. It's important to carefully review the question and the potential effects of accounting inaccuracies on the financial statements.