Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2015 and 2014 contained errors as follows:

2015 2014 Ending inventory $6,000 overstated $16,000 overstated

Depreciation expense $4,000 understated $12,000 overstated

Assume that no correcting entries were made at December 31, 2014. Ignoring income taxes, by how much will retained earnings at December 31, 2015 be overstated or understated?