During 2014, Paul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: Paul uses the periodic inventory system. Prior to any adjustments for these errors and ignoring income taxes, Paul's retained earnings at January 1, 2014, would be: Select one: a. Correct b. $15,000 understated c. $75,000 overstated d. $135,000 understated e. $75,000 understated