For Year 1, Oscar Company records depreciation expense of $12,000 on its income statement and $9,000 of modified accelerated cost recovery system (MACRS) depreciation on its tax retuin. Which of the following answers is correct regarding the difference between the two figures? Mutuple Cholce The difference in depreciation experise is caused by diferences between generapy accepted occounteng princplies fickipj and the tax code Deferred taxes of $3.000 ore subtracted from tawale income of Yewr 1 The amount of depreciation tecoeded on the income tax teturn must be inconect Net income is understated ty 53,000 on the Yoar 1 uncume stapened