International Paper Company. Depreciation policies in Annual Reports. Plant, Properties and Equipment. Plant, Properties, and Equipment are stated at…

International Paper Company. Depreciation policies in Annual Reports. Plant, Properties and Equipment. Plant, Properties, and Equipment are stated at cost less accumulated depreciation. For financial reporting purposes, the company uses the units-of-production method of depreciating its major pulp and paper mills and certain wood products facilities, and the straight-line method for other plans and equipment. Annual straight-line depreciation rates for financial reporting purposes are for building – 2 ½% to 8 ½ % and for machinery and equipment 5% to 33%. . Are the depreciation methods used in the company’s financial statements determined by current income tax laws? If not, who is responsible for selecting these methods? Explain.