The Goldman Company purchased equipment on November 1, Year 1 for $35,000. The equipment has a 10-year life and a zero salvage value. The company uses straight-line depreciation for financial reporting and MACRS for seven-year property for tax purposes. Based on this information, which of the following is true?

a. In the early years of the assets life, higher depreciation expenses will be shown on the income statement than on the tax return.

b. There will be deferred taxes shown on the income statement.

c. Taxes due on the tax return will be lower in the early years of the assets life because of the depreciation charges.

d. Taxes due on the tax return will be lower in the later years