For each of the following situations, indicate the effect on assets, net income, and retained earnings at December $31,2020$ and $2021$ as follows $($Based on IFRS$)$:

$$ 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 your choice eg NI U $$ expenses too high

Note: please present in a table form

a$)$ Depreciation expense on machinery is too high for $2020$ and the $2021$ depreciation expense is correct.

b$)$ A $3-$year rental agreement was signed on Jan. $12020$ and recorded as a prepaid asset. No rent expense has been recognized.

c$)2019$ ending inventory was overstated by $$10,000$; $2020$ inventory understated by $$8,000$; $2021$ inventory was correct.

d$)$ A machine with a $15-$year useful life was expensed when purchased in $2020.$ e$)$ Did not accrue interest expense on a note payable at Dec $312020.$ Interest expensed when paid in $2021.$