The questions need to be answered in short-essay question. Thank you.

You are a recent graduate from Texas A\&M International University with an undergraduate degree in accounting. You have been hired for an accounting staff position at Laredo Freight Import and Export (LFIE). LFIE is a startup corporation that was formed by experienced executives to take advantage of the expected import and export business due to the new trade agreement with Mexico. To prepare for the upcoming year, LFIE wants to buy 10 tractor trailers. The cost of each tractor trailer is $150,000. Based on the experience of the executives, these assets are expected to have a useful life of 7 years (1,000,000-mile life) and a salvage value of 20% of the original cost. It is estimated that in the first two years, each truck would be driven 100,000 miles and 150,000 miles, respectively. Although the useful life is 7 years, the company is expected to trade-in these tractors for new ones at the end of 5 years. Prior to depreciation and taxes, the company's income (revenue less expenses) is 1,500,000 and it is in the 21% corporate tax rate. The average assets of the company are $15,000,000 and the average equity is $1,000,000. Deliverables: 1. What depreciation method would you recommend that LFIE select (straight line, activitybased, or accelerated depreciation)? (Assessment dimension: Explanation of issues.) 5 points 5. Will the choice of depreciation method impact LFIE's cash flow to have the funds to purchase new fixed assets when the current ones are disposed of? (Assessment dimension: Analysis.) 5 points 6. Knowing that LFIE will have to prepare a tax return as a corporation using accrual accounting, what depreciation method will be used for tax purposes? (Assessment dimension: Analysis.) 5 points 7. Knowing the answer to \#4 above, would this impact the recommendation you will make for LFIE to use? (Assessment dimension: Explanation of issues.) 5 points 8. What accounting considerations will you need to consider and account for because of the temporary differences between financial (GAAP) and tax accounting? Are these differences advantages to LFIE? (Assessment dimension: Analysis.) 6 points