Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following errors:

12/31/19 Retained Earnings is in error by:

Select one:

a. No error

b. $18,000

c. $12,000

d. $29,000

e. $21,000

2018 Ending inventory Depreciation expense 2017 $15,000 understatement $6,000 understatement $24,000 overstatement $12,000 understatement Failed to record Unearned Revenue at 12/31/18: $7,000 Straightarm declared a cash dividend of $11,000 on 12/31/18. No journal entry was made in 2018. The dividend was paid on 1/3/19; Straightarm debited Retained Earnings and credited Cash