The reported net incomes for the first 2 years of Waterway Products, Inc., were as follows: 2020, $160,800; 2021, $175,800. Early in 2022, the following errors were discovered.

1.		Depreciation of equipment for 2020 was overstated $17,600.
2.		Depreciation of equipment for 2021 was understated $37,400.
3.		December 31, 2020, inventory was understated $45,000.
4.		December 31, 2021, inventory was overstated $16,400.

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