Depreciation Statements Evaluation Steps:

• Identify the statements about depreciation, but note they are not provided in the query.
• Review choices to determine which combination is correct, given as C (1 and 3 only).
• Assess correctness based on standard accounting principles for depreciation.
• Conclude that without explicit statements, evaluation relies on the provided correct option.

Why C is correct:

• Depreciation allocates an asset's cost over its useful life per matching principle in GAAP, supporting statements 1 and 3 as accurate while 2 is not.

Why the others are wrong:

• A includes incorrect statement 2, overstating depreciation's role.
• B excludes correct statement 3 on non-cash expense nature.
• D excludes correct statement 1 on systematic allocation.

Not enough information on exact statements to fully verify. Final answer: C