7. Hudson, Inc. is a calendaryear corporation. Its nancial statements for the years 2015 and 2014 contained errors as follows: 2015 2014 Ending inventory $6,000 overstated $16,000 overstated Depreciation expense $4,000 understated $12,000 overstated 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