Early, Inc. is a calendar-year corporation whose financial statements for 2007 and 2008 included errors as follows:
Year Ending Inventory Depreciation Expense
2007 $162,000 overstated $135,000 overstated
2008 54,000 understated 45,000 understated
Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2007, or at December 31, 2008. Ignoring income taxes, by how much should Early's retained earnings be retroactively adjusted at January 1, 2009?