Depreciation Expense Income Statement is a report that showcases the amount of depreciation an organization has incurred for the year. It reports the estimated reduction in the value of assets, such as buildings, vehicles, and machinery due to wear and tear. This data is used to calculate taxes and other financial obligations by reducing the company’s taxable income. Depreciation Expense Income Statement gives a clear understanding of the current state of an organization’s assets and provides long-term insights into trends in asset values.