On December 31, 2014, the Maggie Company Recognized $15,000 in Revenue

On December 31, 2014, the Maggie Company recognized $15,000 in revenue from rent of $5,000 due in 2015 and $10,000 due in 2016, all collected in advance from another company. Ignoring income taxes, if this error is not detected

A) Retained Earnings at December 31, 2015, will be overstated by $10,000
B) Retained Earnings at December 31, 2015, will be understated by $10,000
C) Retained Earnings will be overstated by $15,000 until the error is discovered
D) Retained Earnings at December 31, 2015, will be understated by $15,000

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