Question 10 Homework Unanswered Which of the following statements is true? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. A tax credit reduces tax expense more than a deduction. b Exclusions are revenue that is excluded from the income statement but required to be shown on the tax return. Deductions are subtracted to reduce gross income recognized. d Deductions on the tax return are always equal to expenses on the Income Statement. Diamond, Inc. had the following Income Statement at the end of the year. Compute Diamond's federal income tax expense given the tax rate of 21%. What is the company's net income? Sales Cost of goods sold Gross profit Salaries Rent Penalties Business meal with clients Federal income tax Net income $91,000 ($22,000) $69,000 ($31,000) ($2,000) ($1,500) ($4,200) ? ? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $23,622 b $28,440 $23,181 [] Ful d $7,119