Thefollowingis anote accompanyinga recentfinancialstatementofDFML Course Plant, Properties,and Equipmentarestated atcostless accumulated depreciation.Expendituresfor bettermentsare capitalized,whereas normalrepairs and maintenanceareexpensed asincurred.The unitsof-production method ofdepreciationisusedformajorpulp and papermills, and the straight-line method is used forotherplants andequipment. Annualstraight-line depreciationratesare,forbuildings2 percentto 8 percent, andformachineryand equipment5 percentto33 percent. (10) Instructions a. Are the depreciation methods used inthecompany's financialstatementsdetermined bycurrent income taxlaws? Ifnot, who isresponsible forselectingthese methods? Explain. b.Doesthe companyviolatethe consistencyprinciple byusingdifferentdepreciation methods for itspapermills and wood products facilitiesthanitusesforits otherplantand equipment? Ifnot, what doesthe principleofconsistencymean? Explain. c. Whatistheestimatedusefullifeofthe machineryandequipmentbeingdepreciated witha straight-line depreciationrate of: 1.5 percent. 2.33 percent(roundtothenearestyear). d.Who determinesthe usefullivesoverwhich specificassetsare tobe depreciated? e. Why do you thinkthecompanyuses accelerated depreciation methodsforincome tax purposes, ratherthan usingthe straight-line method?