The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2012, $147,000; 2013, $185,000. Early in 2014, the following errors were discovered.

1. Depreciation of equipment for 2012 was overstated $19,000.
2. Depreciation of equipment for 2013 was understated $38,500.
3. December 31, 2012, inventory was understated $50,000.
4. December 31, 2013, inventory was overstated $14,200.

Instructions
Prepare the correcting entry necessary when these errors are discovered. Assume that the books for 2013 are closed. (Ignore income tax considerations.)