Use the Following Information for Questions 61 Through 63

Multiple Choice

Use the following information for questions 61 through 63.
Bishop Co. began operations on January 1, 2014. Financial statements for 2014 and 2015 con- tained the following errors: In addition, on December 31, 2015 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2016. No corrections have been made for any of the errors. Ignore income tax considerations.
-The total effect of the errors on the balance of Bishop's retained earnings at December 31, 2015 is understated by

A) $318,800.
B) $258,800.
C) $174,800.
D) $126,800.