Question

The income statement disclosed the following items for the year: depreciation expense $57,000.

a. Operating Income $57,000
b. Net Income $57,000
c. Gross Profit $57,000
d. Earnings Before Tax $57,000

Answer 1

The correct option that represents the depreciation expense on the income statement is earnings before tax.

Step-by-step explanation:

The subject of this question is Business.

The income statement disclosed the depreciation expense of $57,000. The correct option that represents this item is d. Earnings Before Tax $57,000.

Depreciation expense is a non-cash expense that represents the allocation of the cost of an asset over its useful life. It is deducted from revenue to determine operating income or earnings before tax.