Skysong Tool Company's December $31$ year$-$end financial statements contained the following errors.

$\backslash$table$[[,$December $31,2025,,$December $31,2026],[$Ending inventory,$$9,400$ understated,,$$8,500$ overstated$],[$Depreciation expense,$2,000$ understated,$-,]]$

An insurance premium of $$65,100$ was prepaid in $2025$ covering the years $2025,2026,$ and $2027.$ The entire amount was charged to expense in $2025.$ In addition, on December $31,2026,$ fully depreciated machinery was sold for $$14,500$ cash, but the entry was not recorded until $2027.$ There were no other errors during $2025$ or $2026,$ and no corrections have been made for any of the errors. $($Ignore income tax considerations.$)$