epreciation expenses directly affect a company$$s taxable income. An increase in depreciation expense will lead to a taxable income. It will tax deducted from a company$$s earnings, thus leading to a operating cash flow.

According to a tax law established in $1969,$ taxpayers must pay the of the Alternative Minimum Tax $($AMT$)$ or regular tax.

The applicable tax rate for S corporations is based on the:

Stockholders$$ individual tax rates

Corporate tax rate