Depreciation allowance _________ the profit subject to taxation, which_______ the amount of tax the firm pays.
A)decreases; decreases
B)increases; increases
C)increases; decreases
D)decreases; increases

Question

Quizplus · Accepted Answer

Depreciation allowance decreases the profit subject to taxation because it is deducted from the revenue before calculating taxable income, which in turn decreases the amount of tax the firm pays because the tax is calculated on a lower profit.

Depreciation Allowance _________ the Profit Subject to Taxation, Which_______ the Amount

Depreciation Allowance ___ the Profit Subject to Taxation, Which_ the Amount