Problem 3: Fairoz Market Company had recorded $470,000 as revenues for the year 2020. Its overall operating expenses, excluding depreciation, were $255,000. The company bought a three doors-Fridge (Equipment) in 2020 for $180,000 that has $20,000 salvage value and is fully depreciated over four years. The company uses the accelerating method for financial reporting tax purposes and the straight-line method for tax purposes. It operates under the 35% tax bracket. 1. What would be the depreciation expense for tax reporting and financial reporting respectively in the first year?* OA) $90,000; $40,000 B) $40,000; $90,000 C) The depreciation expense for tax reporting is higher than that of financial reporting. OD) None of the above 2. What is the firm's net income for financial reporting and tax reporting respectively. O A) The Net Income doesn't change and it is totaled $81,250 OB) $81,250; 113,750 O C) $113,750; $81,250 O D) The net income for tax reporting is less than the net income for financial reporting by $32,500 OE) None of the above