A recent annual report for the Depp Company contained the following note:

Property, plant, and equipment is stated at cost, less allowance for depreciation. Depreciation expense is determined principally by the straight-line method. The annual rates of depreciation are 4 percent to 10 percent for buildings and improvements and 10 percent to 40 percent for machinery and equipment.

Required:

1. What is the range of expected lives for buildings and improvements?

2. Explain why Depp Company depreciates the cost of its containers instead of including the total in cost of goods sold in the year the product is sold.