Newberry purchased XYZ bonds for $$70,000$ on $\frac{1}{1}\frac{?}{21}.$ The year$-$end values of the bonds for years $2021-2023$

respectively were $$62,000,$$$69,000,$ and $$75,000.$ Newberry failed to make any adjustment to record unrealized

gains$/$losses during the three years the bonds were classified available$-$for$-$sale. $12/31/23$ Retained Earnings is:

Select one:

a$.$ $$6,000$ overstated

b$.$ $$6,000$ understated

c$.$ $$5,000$ understated

d$.$ $$5,000$ overstated

e$.$ Correct