QUESTION 2: The framework of financial reporting and financial statement analysis [29 MARKS] 2.1 A machine costing R120 000 has a useful life of five years (20% depreciation). Calculate the assets depreciation for all five years using both the straight-line method and diminishing balance method. Also, discuss the difference between the two methods and provide an appropriate example to explain how one would choose the appropriate method to use.(10) 2.2 Consider the following information: Jenny is the owner of Exco (Pty) Ltd and has 90 employees, two stakeholders, total liabilities of R3-million and a total turnover of R900 000 for the financial year. Discuss whether Exco (Pty) Ltd should prepare financial statements in terms of IFRS or IFRS for SMEs?