Can some please explain. I don't know how to get to the answer and why is it understated

Multiple Choice Question 62 Your answer is correct. Pharoah Co. began operations on January 1, 2017. Financial statements for 2017 and 2018 contained the following errors: Dec. 31, 2017 Dec. 31, 2018 $158000 overstated$179000 understated Ending inventory Depreciation expense Insurance expense Prepaid insurance 118000 overstated 82000 understated 82000 overstated 82000 overstated In addition, on December 31, 2018 fully depreciated equipment was sold for $35200, but the sale was not recorded until 2019. No corrections have been made for any of the errors. Ignore income tax considerations The total effect of the errors on the balance of Pharoah's retained earnings at December 31, 2018 is understated by $414200. $332200 $214200 $174200