Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors:

2024

2025

Ending inventory

$15,000 understatement

$24,000 overstatement

Depreciation expense

$6,000 understatement

$12,000 understatement

Failed to record Unearned Revenue at 12/31/25: $7,000

Straightarm declared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025. The dividend was paid on 1/3/26; Straightarm debited Retained Earnings and credited Cash.

12/31/25 Total Stockholders Equity is in error by:

Select one:

a. $49,000

b. $53,000

c. $54,000

d. $45,000

e. $60,000