A financial manager makes the following statements about the straight-line depreciation and Modified Accelerated Cost Recovery System (MACRS) method:

Statement 1: Straight-line depreciation method is commonly used for reporting purposes while MACRS is generally used for tax purposes.

Statement 2: The MACRS method results in higher depreciation expenses and higher taxes in its early life of a project.

Are the two statements correct or incorrect?

A) Statement 1 is correct, statement 2 is incorrect.

B) Statement 1 is incorrect, statement 2 is correct.

C) Both statements are correct.

D) Both statements are incorrect.