The ____ the amount of depreciation charged in a period, the ____ will be the firm's taxable income.

Name: The ____ the amount of depreciation charged in a period, the ____ will be the firm's taxable income.
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Question

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The greater the amount of depreciation charged in a period, the lower will be the firm's taxable income. This is because depreciation expense is deductible for tax purposes, so the more depreciation a company records, the lower its taxable income will be.

The ____ the Amount of Depreciation Charged in a Period