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DB

This function calculates the depreciation of an asset for a specified period using the fixed‑declining balance method.

Syntax

DB(cost, salvage, life, period, [month])

Arguments

This function has these arguments:

Argument

Description

cost

[Required] Initial cost of the asset

salvage

[Required] Value at the end of the depreciation period

life

[Required] Number of periods over which the asset is being depreciated

period

[Required] Period for which you want to calculate the depreciation; use the same units as the life argument

month

[Optional] Number of months in the first year; if omitted, the calculation uses 12 months

Remarks

The fixed-declining balance method computes depreciation at a fixed rate. This function uses the following equation to calculate depreciation for a period:

(cost – total depreciation from prior periods) x rate

where:

rate = 1 – ((salvage/cost)^(1/life)), rounded to three decimal places

Depreciation for the first and last periods is a special case. For the first period, the function uses this equation:

dep = cost x rate x month/12

For the last period, the function uses this equation:

dep = ((cost – total dep. from prior periods) x rate x (12 – month))/12.

Examples

DB(B1,1000,10,1)

DB(R1C2,10000,10,1)

DB(500000,5000,5,1,10) gives the result of 25,0833.3333333334