During 2025, Kaul Company discovered that the depreciation reported on its financial statements were incorrect by the following amounts:

2023 $60,000 understated

2024 $75,000 overstated

Prior to any adjustments for these errors and ignoring income taxes, working capital at January 1, 2025, would be:

Select one:

a. Correct

b. $75,000 overstated

c. $15,000 overstated

d. $135,000 overstated

e. $15,000 understated