Answer the following question:

Owens Corporation made a very large arithmetical error in the preparation of its year-end financial statements by the improper placement of a decimal point in the calculation of depreciation. The error caused the net income to be reported at almost double the proper amount. Correction of the error when discovered in the next year should be treated as

a) An increase in depreciation expense in the year the error was discovered

b) An adjustment to retained earnings in the year the error was made

c) An increase in depreciation expense in the year the error was made

d) An increase in losses on the income statement in the year the error was discovered

e) An adjustment to retained earnings in the year the error was discovered