Under MACRS depreciation,a corporation receives a tax benefit in the current year higher than the deduction reflected on the financial statements causing deferred taxes payable to increase.

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Under MACRS, assets are depreciated at a faster rate for tax purposes than for financial statements, resulting in a higher tax benefit in the current year. This creates a temporary difference between taxable income and financial income, causing deferred taxes payable to increase.

Under MACRS Depreciation,a Corporation Receives a Tax Benefit in the Current