Question 4 1 pts Which of the following statement is incorrect? Most of the answers are correct. O Marginal tax rate applies to the next dollar of taxable income earned, and changes as the level of taxable income changes. Depreciation is a tax-deductible expense and it increases the cash flows of the firm. The income statement measures a firm's profitability at a point in time. The firm's investment in Fixed Assets reflects its long-term capital base and these assets are primarily composed of Gross Plant and Equipment