As seen on an income statement:

a) Interest is deducted from income and increases the total taxes incurred.

b) Depreciation reduces both the pre tax income and the net income.

c) Depreciation is shown as an expense but does not affect the taxes payable.

d) The tax rate is applied to the earnings before interest and taxes when the firm has both depreciation and interest expenses.

e) Interest expense is added to earnings before interest and taxes to get pre tax income.