Powell Company had the following errors over the last two years: 2016: Ending inventory was overstated by $60,000 while depreciation expense was overstated by $26,000. 2017: Ending inventory was understated by $12,000 while depreciation expense was understated by $7,600. By how much should retained earnings be adjusted on January 1, 2018? (Ignore taxes) Multiple Choice Increase by $48,000 Decrease by $34,400. Increase by $30.400. Decrease by $30,400