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Where Is Depreciation on Fixed Assets Entered?

The fixed asset entry on the balance sheet should be the current depreciated book value figure (not fair market value or replacement value). The valuation methods used in the engine will capture the underlying value of the "hard assets" (inventory and fixed assets) through pertinent market-based multiples of revenue and cash flow. In a related manner, the income statement should include the current period depreciation expense (and amortization expense, if any).