Powell Company had the following errors over the last two years: 2019: Ending inventory was overstated by $57,000 while depreciation expense was overstated by $25,200. 2020: Ending inventory was understated by $5,500 while depreciation expense was understated by $6,200. By how much should retained earnings be adjusted on January 1, 2021? (Ignore taxes)

Multiple Choice

A. Decrease by $32,200.

B. Increase by $51,500.

C. Increase by $24,500.

D. Decrease by $24,500.