Use the Following Information for Questions 92 Through 94

question 28

Multiple Choice

Use the following information for questions 92 through 94.
Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2015 and 2014 contained errors as follows:
-Assume that no correcting entries were made at December 31, 2014. Ignoring income taxes, by how much will retained earnings at December 31, 2015 be overstated or understated?

• A) $ 2,000 understated
• B) $15,000 overstated
• C) $15,000 understated
• D) $18,000 understated