Ernst Company purchased equipment that cost $$750,000$ on January $1,2010.$ The entire cost was recorded as an expense. The equipment had a nine year life and a $$30,000$ residual value. Ernst uses the straight$-$line method to account for depreciation expense. The error was discovered on December $10,2012.$ Ernst is subject to $40\%$ tax rate.Before the correction was made and before the books were closed on December $31,2012,$ retained earnings was understated bya$)$ $$354,000$b$)$ $$450,000$c$)$ $$332,000$d$)$ $$336,000$