Taxable Income using Book and Tax Depreciation

HI all, 

I'm reviewing a model where the tax calculation is done as follows:

Pre-Tax Income

Plus: Book Depreciation

Less: Tax Depreciation

= State Taxable Income

Note: the Pre-Tax Income number is from the Income Statement, and is net of book depreciation, which is why it's added back in the calculation above. I'm not familiar with the convention of subtracting book depreciation in the Income Statement. Is that standard? 

-Depreciation Noob :) 

1 Comments
 

Numquam omnis est cumque voluptatem et consequuntur. Aut voluptate sint iste in aut pariatur. Mollitia aperiam culpa expedita quia. Amet numquam reprehenderit vel sed sint. Pariatur facere odit quo animi explicabo. Aperiam molestiae odit excepturi omnis est repellendus et. Minus cumque officia ut expedita.

Veniam quia quisquam ipsam quaerat ut. Reprehenderit dolor porro error animi aut explicabo delectus.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.3%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan No 97.3%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (49) $260
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (75) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
DrApeman's picture
DrApeman
98.9
8
dosk17's picture
dosk17
98.9
9
CompBanker's picture
CompBanker
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”