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DB


Name

Depreciation (fixed-declining balance method)

Description

Calculates the depreciation of an asset for a specified period using the fixed-declining balance method.

Syntax

DB(Cost, Salvage, Life, Period, Month)

Remarks

Arguments are as follows:

Argument Description
Cost Initial cost of the asset
Salvage Value at the end of the depreciation period
Life Number of periods over which the asset is being depreciated
Period 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 assumes 12 months.

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

(Cost – total depreciation from prior periods) × 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 DB function uses this formula:

Cost × rate × month/12

For the last period, the DB function uses this formula:

((Cost – total depreciation from prior periods) × rate × (12 – month))/12

See also DDB, SLN, and SYD.

Data Type

Accepts numeric data for all arguments. Returns numeric data. For more information, see Data Type for Each Cell Type.

Example

DB(R1C2,10000,10,1)
DB(500000,5000,5,1,10)=250833.3333333333

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