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The product of the unexplained variance on each of the variates is calculated using:
Book Income Before Income Tax
The income reported in financial statements before the effect of income taxes, reflecting the financial performance from core operation and non-operational activities.
Tax Depreciation
The method by which a business writes off the cost of a tangible asset over its useful life for tax purposes.
Book Depreciation
The allocation of the cost of a tangible asset over its useful life for accounting and tax purposes.
Tax Rate
The percentage at which an individual or corporation is taxed, or the government's claim on earnings.
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