Can depreciation on Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixd Asset?

Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset. One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books. The depreciation entry debits depreciation expense and credits accumulated depreciation.