Citing (and correcting) an example with incorrect glossing and translation
If the mistakes are indeed as obvious as this (i.e., there cannot be a difference of interpretation), I would just use the corrected version and add a footnote to the citation in which you explain the differences.

If there could be a debate over which is the correct gloss or translation, list your own version but cite with something like "cf. SomeAuthor", and again add a footnote, this time with discussion as well.