Cabinet Concept's year end is December 31.Its financial statements for the years 2017 and 2016 contained an error as follows:

20172016

Ending inventory$2,000 overstated$3,000 overstated

Depreciation expense$6,000 understated$12,000 overstated

Assume that no correcting entries were made at December 31, 2016. Ignoring income taxes, by how much will retained earnings at December 31, 2017 be overstated or understated? Show work

a.$4,000 understated

b.$6,000 overstated

c.$6,000 understated

d.$15,000 understated