1.As seen on an Income statement:

A.Deperciation expense, while shown as an expense, is excluded from the calculation of income taxes.

B.because depreciation is noncash expense, it does not impact income tax expense

C.depreciation expense is a contra-expense that is added to income and increase income tax expense

D.depreciation expense is deducted from income, which increase income tax expense

E.Depreciation expense is deducted from income, which decreases income tax expense.

2.All other things being equal, which of the following actions will increase the value of stockholders equity?

A.A decrease in retained earnings.

B.An increase in long-term debit

C.A decrease in inverntory

D.An increase in accumulated depreciation

E.An increase in property, plant and equipment