tangley Company December 31 yearend financial statements contained the following en Dec Dec 31, 2020 31 2021 $35.000 aventated Finding inventory Depreciation expense sw.500 understated 10,000 understated An insurance premium of $90.000 was prepaid in 2020) covering the year 2000, 2001, and 2002. The prepayment wm recorded with a debit to insurance expense. In addition, on December 31, 2025, fully depreciated machinery was cold for $47.500 cash, but the wale was not recorded until 2022. There were no other errors during 2021 or 24022 and no corrections have been made for any of the errors. Ignore income tax consideration What is the total effect of the errors on the balance of Langley's retained earnings at December 31, 23217 Xetained earnings understated by $12,500 Retained emingsovered by $17.500 O Retained eaming understated by 5.000 Retained eaming understated by $23.500