Use the Following Information for Questions 66 and 67

Multiple Choice

Use the following information for questions 66 and 67.
Ernst Company purchased equipment that cost $2,250,000 on January 1, 2014. The entire cost was recorded as an expense. The equipment had a nine-year life and a $90,000 residual value. Ernst uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2016. Ernst is subject to a 40% tax rate.
-Ernst's net income for the year ended December 31, 2014, was understated by

A) $1,206,000.
B) $1,350,000.
C) $2,010,000.
D) $2,250,000.