At December $31,20$x$2,$ Lucia Company reported Retained Earnings of $$20000,000.$ In $200$X$3,$ Lucla determined that $20$X$1$ amortizaticn expense was understated by $$1\mathrm{.}500,000.$ in $200$ c $,$ net income was $$6\mathrm{.}900,000$ and dividends declared were $$2\mathrm{.}250,000.$ The company's tax rate is $20$ k $.$ Lucia iswes comparative incone statements and statements of stochholder's equity for $200$ C $,$ and $203.$

Which of the following statements is true regarding the reporting for this error on Lucia Company$/$s compunative statements of stockholders' equity?

No adjustment to retained earningt for $200$ K $2$ er $200$ Cl is necesuary because the error occurred in $20CL.$

The beginning balance of $200$ Cl retained earnings will be decrased for the correction of the error by $$1,500\mathrm{.}000.$

The beginning balance of $2002$ retained eamings will be increased lor the correction of the error by $$1,500\mathrm{.}000.$

The beginning balance of $202$ retained earnings mill be decreased for the correction of the error by $$1\mathrm{.}200000.$