In 2014, Bailey Corporation discovered that equipment purchased on January 1, 2012, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey's 2014 journal entry to correct the error.

Equipment .......................................................................................... 50,000

Accumulated Depreciation--Equipment................................................................ 20,000

Deferred Tax Liability............................................................................................... 9,000

Retained Earnings.................................................................................................... 21,000

($20,000 = $50,000 X 2/5; $9,000 = $30,000 X 30%)