Stockholders' equity is equal to Multiple Choice net working capital plus long-term liabilities. current assets plus fixed assets minus long-term liabilities. current assets minus total liabilities plus fixed assets. total assets plus total liabilities. net working capital plus total fixed assets. As seen on an income statement, Multiple Choice depreciation expense is deducted from income, which decreases income tax expense. depreciation expense, while shown as an expense, is excluded from the calculation of income taxes. depreciation expense is a contra-expense that is added to income, and increases income tax expense. depreciation expense is deducted from income, which increases income tax expense. because depreciation is a noncash expense, it does not impact income tax expense.