Related Topics:

Function Wizard Functions

DB

Description: Returns the asset depreciation for a period using the fixed declining balance method.

Syntax: DB(Cost, Salvage, Life, Period, [Month])

Remarks:

(cost - total depreciation from prior periods) * rate

where:

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

cost * rate * month / 12

((cost - total depreciation from prior periods) * rate * (12 - month)) / 12

Example:

Suppose a factory purchases a new machine. The machine costs $1,000,000 and has a lifetime of six years. The salvage value of the machine is $100,000. The following examples show depreciation over the life of the machine. The results are rounded to whole numbers.

 

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