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
 

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