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Depletion

A deductible expense is a term used to describe the reduction in value of a natural resource as a result of its extraction. This means that when a natural resource is taken out of the ground, its value decreases. This is an important concept to understand in finance, as it impacts the overall profitability of a company. Essentially, it is a way to account for the depletion of natural resources and their impact on a company's financial health.
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