Langley Company's December $31$ year$-$end financial statements contained the following errors:

$20202021$

Ending Inventory $ $37,500$ Understated $ $55,000$ Overstated

Depreciation Expense $10,000$ Understated

An insurance premium of $$90,000$ was prepaid in $2020$ covering the years $2020,2021,$ and $2022.$ The prepayment was recorded with a debit to insurance expense. In addition, on December $31,2021,$ fully depreciated machinery was sold for $$47,500$ cash, but the sale was not recorded until $2022.$ There were no other errors during $2021$ or $2022$ and no corrections have been made for any of the errors. Ignore income tax considerations.

What is the total effect of the errors on the balance of Langley's retained earnings at December $31,2021?$