Pass the necessary adjusting entries for the following taking into account income tax effects (40% tax rate) and assuming that the books have been closed;

1.Depreciation on equipment for the year was erroneously recorded as $5,319 rather than the correct figure of $53,190.

2.A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,295 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.