Plants, Properties, and Equipment Plants, properties, and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, where normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for major pulp and paper mills, and the straight-line method is used for other plants and equipment. Annual straight-line depreciation rates are 2.50 percent 8.50 percent for buildings, and 5 percent to 33 percent for machinery and equipment.

What is the estimated useful life of the machinery and equipment being depreciated with the following straight-line depreciation rates?

5 percent.

33 percent (round to the nearest year).

Who determines the useful lives over which specific assets are to be depreciated?