The reported net incomes for the first 2 years of Sandhill Co. were as follows: 2017, $169,000; 2018, $225,000. Early in 2019, the following errors were discovered. 1. Depreciation of equipment for 2017 was overstated by $7,900. 2. Depreciation of equipment for 2018 was understated by $15,400. 3. December 31, 2017 ending inventory was overstated by $20,300. 4. December 31, 2018 inventory was overstated by $28,300. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.