24) Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: Ending inventory Depreciation expense 2011 $3,000 overstated $2,000 understated 2010 $8,000 overstated $6,000 overstated Assume that no correcting entries were made at December 31, 2010. Ignoring income taxes, by how much will retained earnings at December 31, 2011 be overstated or understated? a. $1,000 understated b. $5,000 overstated c. $5,000 understated d. $9,000 understated - 65