QUESTION 25 The Sylvester Corporation purchases a machine on January 1, 2019 for $1,200,000. The machine has an estimated ten-year useful life and a $200,000 salvage value. If the Sylvester Corporation forgets to make the required adjusting entry for depreciation for the year ended December 31, 2019: a. Retained earnings will be overstated b. Assets will be understated Oc. Net Income will be understated d. Liabilities will be overstated QUESTION 26 Which of the following is a description of an activity which would be considered fraud? a. All of these situations would be considered fraud. On December 31, 2019, Evergood Company sold a machine previously used in production for a gain of $20,000 and Ob. included the gain in 2019 net income. On December 31, 2019, Evergood Company recorded as revenue the $20,000 sales price of items which will be . shipped January 3, 2020. On December 31, 2019, Evergood Company decided to use an estimate of 3% of sales for their estimate of "uncollectible accounts instead of the 2% they used in 2019. d