The Barkley Company has several automobiles that are used in the business.Recently,the owners were told that even though the government permits the firm to depreciate the vehicles,it is not a deductible expense on the income statement.

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Depreciation is a deductible expense on the income statement. It represents the allocation of the cost of a tangible asset over its useful life, and for tax purposes, it reduces the taxable income of the business.

The Barkley Company Has Several Automobiles That Are Used in the Business.Recently,the