Final answer:
Depreciation of a fixed asset is the decrease in its value over time due to various factors, with straight-line depreciation being a common method of calculation.
Explanation:
Depreciation of a fixed asset occurs when the value of the asset decreases over time due to factors like wear and tear, obsolescence, or usage. One common method of calculating depreciation is straight-line depreciation, where the cost of the fixed asset is allocated evenly over its useful life. For example, if a company purchases a vehicle for [tex]$20,000 with an estimated useful life of 5 years, the annual depreciation expense would be $[/tex]4,000.
Learn more about Depreciation of fixed assets here:
https://brainly.com/question/36766541
