Simple accounting question - Impact to financial statements

I have a question on impact to financial statements when PP&E is bought and say has a useful life of 10 years and taxes are 40%.

At time of purchase:

Balance Sheet: PP&E increases by say $100, cash decreases or Acc. Payable increases by same amount

Cash Flow: cash flows deceases by amount if paid with cash

During year

Income Statement: Dep. expense increases by 10, so NI decreases by 6 (100*(1-40%) due to increased depreciation;

Balance Sheet:
Asset - Net PP&E decreases by 10

Share holders equity – Retained earnings decreases because by 6 due to less NI

My question is what's the offsetting entry to make balance sheet equal? Taxes payable? Also, is there any impact on SCF during the year.

Thanks.