Bishop Co. began operations on January 1, 2010. Financial statements for 2010 and 2011 con- tained the following errors:

Dec. 31, 2010 Dec. 31, 2011
Ending inventory $132,000 too high $156,000 too low
Depreciation expense 84,000 too high
Insurance expense 60,000 too low 60,000 too high
Prepaid insurance 60,000 too high


In addition, on December 31, 2011 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2012. No corrections have been made for any of the errors. Ignore income tax considerations.