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O- Presented below are the comparative income statements for Watson Industries for the years 2018 and 2019, prior to the information provided in the bulleted list below. Assume no taxes exist. 2019 2018 Sales $660,000 $600,000 Cost of Sales 430 000 390.000 Gross Profit 230,000 210,000 Expenses 180.000 170.000 Net Income $ 50 000 $ 40.000 Retained Earnings, Jan. 1 $117,000 $ 89,000 Net Income 50,000 40,000 Dividends (15.000) (12.000) Retained Earnings, Dec. 31 $152 000 $117 000 O In 2019, the company decided to switch depreciation methods from sum-of-the-years-digits to the straight-line method. The assets were purchased at the beginning of 2018 for $150,000 O with an estimated useful life of 5 years and no salvage value. In 2019, the company discovered that the ending inventory for 2018 was understated by $13,000. . Prepaid expenses of $4,000 were omitted in 2018. In the revised financial statements, the 12/31/18 Retained Earnings would be: Select one: O a. $117,000 O b. $134,000 O c. $130,000 O d. $126,800 O e. $108,000