Cuff & Link Co. purchased machinery that cost $1, 800,000 on January 4, 2014. The entire cost was recorded as an expense. The machinery has a six-year life and a $180,000 residual value. The error was discovered on December 20, 2015. Ignore income tax considerations. Cuff & Link's income statement for the year ended December 31, 2015, should show the cumulative effect of this error in the amount of: Before the correction was made, and before the books were closed on December 31, 2015, retained earnings was understated by