Can some please explain. I don't know how to get to the answer and why is it understated

Multiple Choice Question 67 Your answer is correct. Crane Company purchased equipment that cost $3460000 on January 1, 2017. The entire cost was recorded as an expense. The equipment had a 9-year life and a $134000 residual value. Crane uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2019. Crane is subject to a 40% tax rate. Before the correction was made and before the books were closed on December 31, 2019, retained earnings was understated by $1550300 $1632533 $1531822. $2076000. Click if you would like to Show Work for this question: Open Show Work