Problem 3: TJ MAX Company had recorded $350,000 as revenues for the year 2020. Its overall operating expenses, excluding depreciation, were $180,000. The Company bought a fixed asset in 2020 for $120,000 that has no salvage value and is fully depreciated over five years. The company uses the accelerating method for tax purposes and the straight-line method for financial reporting. It operates under the 30% tax bracket. 1. What would be the depreciation expense for tax reporting and financial reporting respectively in the first year? * O A) $48,000; $24,000 B) $24,000; $48,000 C) The depreciation expense for tax reporting is lower 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. OA) The Net Income doesn't change and it is totaled $102,200 B) $102,200 ; $85,400 C) $85,400; $102,200 D) The net income for tax reporting is greater than the net income for financial reporting by $6,300 E) None of the above