On January $2,2021,$ Carla Vista Corp. purchased machinery for $$272160.$ The entire cost was incorrectly recorded as an expense. The machinery has a nine$-$year life and a $$20160$ residual value. Carla Vista uses straight$-$line depreciation for all its plant assets. The error was not discovered until May $1,2023,$ and the appropriate corrections were made. Ignore income tax considerations.

Before the corrections were made, retained earnings was understated by

$$216160,$

$$184800.$

$$272160.$

$$240800.$