The reported net incomes for the first 2 years of Sandra Gustafson Products, Inc., were as follows: 2014, $147,000; 2015, $185,000. Early in 2016, the following errors were discovered.

1.		Depreciation of equipment for 2014 was overstated $17,000.
2.		Depreciation of equipment for 2015 was understated $38,500.
3.		December 31, 2014, inventory was understated $50,000.
4.		December 31, 2015, inventory was overstated $16,200.

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