FARMINGTON HILLS, Mich. -- Michigan National Corp. said it would recognize approximately $43 million of tax benefits in the second quarter.

Net income and capital will increase by that amount, and the 1994 income tax provision will be reduced.

The benefits result from the acquisition in 1988 of Independence One Bank of California, formerly Beverly Hills Federal Savings Bank, from the Federal Savings and Loan Insurance Corp.

Michigan National stopped accruing the government-granted tax benefits after a March 1991 U.S. Treasury report challenged their validity, and congressional action last year allowed the bank to take the outstanding benefit.

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