35. Depreciation: A. reduces both taxes and net income. B. increases the net fixed assets as shown on the balance sheet. C. reduces both the net fixed assets and the costs of a firm. D. is a noncash expense which increases the net income. E. decreases net fixed assets, net income, and operating cash flows, 35. Depreciation: A. reduces both taxes and net income. B. increases the net fixed assets as shown on the balance sheet. C. reduces both the net fixed assets and the costs of a firm. D. is a noncash expense which increases the net income. E. decreases net fixed assets, net income, and operating cash flows