The reported net incomes for the first 2 years of Sandra Gustafson Products, Inc., were as follows: 2014, $145,050; 2015, $184,920. Early in 2016, the following errors were discovered.

1.		Depreciation of equipment for 2014 was overstated $13,360.
2.		Depreciation of equipment for 2015 was understated $38,660.
3.		December 31, 2014, inventory was understated $52,780.
4.		December 31, 2015, inventory was overstated $15,720.

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