Newberry purchased XYZ bonds for $70,000 on 1/1/21. 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