Question 2 (20 points). In reviewing the accounting records of Franken Corporation at December 31, Year 5, the chief accountant notices a number of irregularities as follows. a. Depreciation of equipment for Year 3 was overstated $18,900 and for Year 4 understated $42,700. Depreciation of equipment for Year 5 was properly recorded. b. Accrued vacation pay for Year 5 of $33,500 was not recorded. c. Insurance for a 12-month period purchased on November 1 of Year 5 was charged to insurance expense in the amount of $4,320. d. Reported sales revenue for Year 5 is $2,745,400 and the Sales Tax Payable account was credited for a proper amount at the time of sales. The sales tax rate is 8%. However, the Sales Tax Expense account is debited when the sales tax is forwarded to the state's Department of Revenue. At the end of Year 5, the balance in the Sales Tax Expense account is $106,580. e. December 31, Year 3, inventory was overstated $35,600 and December 31, Year 4, inventory was understated $26,500. December 31 , Year 5, inventory was correctly stated. Required Prepare the necessary adjusting or correcting entries at December 31, Year 5, assuming that Franken uses a calendar-year basis. The books for the current year have not been closed