Criticize the following statement: "Depreciation is the loss in value of a fixed asset over a given span of time." The statement suggests that depreciation is related to valuation. This is correct. Valuation implies some measure of present market value. Like valuation, depreciation is the present market value of the original cost of the asset as an expense on the income statement over the useful life of the asset. The statement suggests that depreciation is related to valuation. This is not correct. Depreciation is a method of cost allocation, not valuation. It simply allocates the cost of an asset to the periods that benefit from its use. An asset's actual market value may increase overtime, even though the asset is being depreciated for reporting purposes. The statement suggests that depreciation is related to valuation. This is correct. Depreciation is a method of cost allocation and also valuation. It simply puts a value of the cost of an asset to the period that benefits from that assets use. An asset's actual market value may decrease overtime, even though the asset is being depleted for reporting purposes. Both A, and C. None of the above