Fixed Assets Schedule

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Depreciation is the systematic reduction of the recorded cost of a fixed asset. The reason for using depreciation is to match a portion of the cost of a fixed asset to the revenue that it generates. It is very difficult to directly link a fixed asset with a revenue-generating activity, so we do not try - instead, we incur a steady amount of depreciation over the useful life of each fixed asset, so that the remaining cost of the asset in the company's records at the end of its useful life is only its salvage value.