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As seen on the income statement of a tax-paying firm: Group of answer choices depreciation is shown as an expense but does not affect the
As seen on the income statement of a tax-paying firm:
Group of answer choices
depreciation is shown as an expense but does not affect the tax expense.
interest is deducted from income and increases the total taxes incurred.
interest expense is added to earnings before interest and taxes to compute pretax income.
depreciation reduces both the pretax income and the net income.
the tax rate is applied to the earnings before interest and taxes when the firm pays interest.
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