What effect$($s$)$ does the depreciation expense have for a firm that must pay income taxes?

$19$

Multiple Choice

$00$:$28$:$05$

is a noncash expense that increases the net income.

reduces both the net fixed assets and the costs of a firm.

decreases net fixed assets, net income, and operating cash flows.

increases the net fixed assets as shown on the balance sheet. $$

increases expenses and lowers taxes.