Due to an error in computing depreciation expense, Hadley Corporation understated accumulated depreciation by $48,600 as of December 31, 2016. Hadley has a tax rate of 30%. Indicate whether Hadley's retained earnings as of December 31, 2016, would be overstated (O) or understated (U) and by what amount?

Answer with the amount and either a O or U right beside the amount no space. Example: if your answer is $1,000 overstated put 1,000O

Please show all steps and how you got each number