The reported net incomes for the first 2 years of US Books Corp. were as follows: 2017, $268,000; and 2018, $412,000. Early in 2019, the following errors were discovered.

1. Depreciation of equipment for 2017 was understated $68,500.

2. Depreciation of equipment for 2018 was overstated $39,000.

3. December 31, 2017, inventory was overstated $12,000.

4. December 31, 2018, inventory was understated $73,600.

Required:

Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.)