Final answer:
No, the depreciation expense on the income statement does not have to be the same as on the income tax return due to differences in accounting principles and tax regulations.
Step-by-step explanation:
No, the depreciation expense shown on a company's income statement is not required to be the same amount as the depreciation expense on the company's income tax return. These two amounts can differ due to the differences in accounting principles and tax regulations.
For example, a company may use accelerated depreciation for tax purposes, which allows them to deduct a greater amount of depreciation expense in the earlier years of an asset's life. However, for financial reporting purposes, they may use straight-line depreciation, which allocates an equal amount of depreciation expense over the useful life of the asset.
Therefore, it is important to note that the depreciation expense on the income statement and the income tax return are based on different rules and calculations, and they can vary accordingly.