At the beginning of the current year, a capital expenditure of $24,000 for equipment with an estimated useful life of six years (and no residual value) was debited erroneously to Repairs and Maintenance expense. Straight-line depreciation is used. This error will cause the current year's ending retained earnings to be:

		Understated by $28,000.
		Understated by $24,000.
		Overstated by $4,000.
		Understated by $20,000.