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Many companies use MACRS (Modified Accelerated Cost Recovery System) depreciation for financial reporting purposes and a different method for tax purposes. financial reporting purposes because

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Many companies use MACRS (Modified Accelerated Cost Recovery System) depreciation for financial reporting purposes and a different method for tax purposes. financial reporting purposes because depreciation is not allowed for tax purposes. tax purposes because it results in a larger net income in the early years of a plant asset's life tax purposes because of a desire to report higher expenses in early years in order to pay lower taxes

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