On December 31,2012,the Adjusting Entry for Depreciation Was Made Incorrectly

Multiple Choice

On December 31,2012,the adjusting entry for depreciation was made incorrectly.The following entry was made erroneously: $$\begin{array} { | l | r | r | } \hline \text { Depreciation expense } & 1,500 & \\\hline \text { Accumulated depreciation } & & 1,500 \\\hline\end{array}$$ The correct amount of depreciation should have been $5,100.Consider the effects of this error on the income statement,and identify which of the following statements is TRUE.

A) Net income is overstated by $3,600.
B) Net income is understated by $3,600.
C) Net income is understated y $1,500.
D) Net income is not affected by this error.