During 2023, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:

2021	$60,000 overstated
2022	$75,000 understated

Prior to any adjustments for these errors, Retained Earnings at January 1, 2023 would be:

Question 25Select one:

a.

Correct

b.

$75,000 overstated

c.

$15,000 overstated

d.

$135,000 overstated

e.

$75,000 understated