Due to an Error in Computing Depreciation Expense,Prewitt Corporation Overstated

Multiple Choice

Due to an error in computing depreciation expense,Prewitt Corporation overstated accumulated depreciation by $20 million as of December 31,2016.Prewitt has a tax rate of 30%.Prewitt's retained earnings as of December 31,2016,would be:

A) Overstated by $14 million.
B) Understated by $14 million.
C) Overstated by $6 million.
D) Understated by $6 million.