Use the Following Information for Questions 64 and 65

Multiple Choice

Use the following information for questions 64 and 65.
Link Co. purchased machinery that cost $1,800,000 on January 4, 2013. The entire cost was recorded as an expense. The machinery has a nine-year life and a $120,000 residual value. The error was discovered on December 20, 2015. Ignore income tax considerations.
-Before the correction was made, and before the books were closed on December 31, 2015, retained earnings was understated by

A) $1,800,000.
B) $1,613,333.
C) $1,426,667.
D) $1,240,000.