Question: Annual report analysis E The following footnote excerpted from a recent annual report of Kerr-McGee Corporation describes the company's accounting policies for property, plant, and

Annual report analysis E The following footnote excerpted from a recent annual report of Kerr-McGee Corporation describes the company's accounting policies for property, plant, and equipment:

Property, plant, and equipment is depreciated over its estimated life by the unitof-

production or the straight-line-method.

a. How many different depreciation methods are used by Kerr-McGee Corporation? Does this practice conform with generally accepted accounting principles?

b. Discuss why management might select each of these methods to depreciate plant assets.

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