Brentwood,Inc

Brentwood,Inc.'s Statement of Changes in Owners' Equity for the year ended December 31,2010 showed a reduction to prior period adjustment,net of taxes,equal to $41,250.The company has an effective tax rate of 45%.The gross amount of the error was an:

A) understatement of income in the prior year of $18,563
B) overstatement of income in the prior year of $75,000
C) understatement of income in the current year of $22,688
D) overstatement of income in the prior year of $91,667