One writer stated that:

Depreciation expense was the chief source of funds for growth in industries.

A reader criticized this statement by replying:

The fact remains that if the companies listed had elected, in any year, to charge off \(\$ 10\) million more depreciation than they did charge off, they would not thereby have added one dime to the total of their funds available for plant expansion or for increasing inventories or receivables. Therefore, to speak of depreciation expense as a source of funds has no significance in a discussion of fundamentals.

Comment on these statements, including income tax effects.