For each of the following situations, indicate the effect on assets, net income, and

retained earnings at December $31,2020$ and $2021$ as follows:

$$ O if the financial statement element is overstated.

$$ U if the financial statement element is understated.

$$ NE if there is no effect on the financial statements.

Provide a brief explanation for the choice

Note: please present in a table form

a$)$ A machine with a $15-$year useful life was expensed when purchased in $2020.$

b$)$ Did not accrue interest expense on a note payable at Dec $312020.$ Interest

expensed when paid in $2021.$