On January 1, 2021, Peacock Company discovered that equipment purchased on January 1, 2016, for $120,000 had been expensed rather recorded as an asset. The equipment should have been depreciated over 15 years, with no salvage value. The effective tax rate is 31% Peacock uses straight-line depreciation. Prepare the company's journal entry to correct the error on January 1, 2021. To get partial credit, show your calculations.