General declining-balance depreciation schedule
Depreciation = depgendb(Cost,Salvage,Life,Factor)
Cost of the asset.
Estimated salvage value of the asset.
Number of periods over which the asset is depreciated.
Depreciation = depgendb(Cost,Salvage,Life,Factor) calculates
the declining-balance depreciation for each period.
A car is purchased for $10,000 and is to be depreciated over five years. The estimated salvage value is $1000. Using the double-declining-balance method, the function calculates the depreciation for each year and returns the remaining depreciable value at the end of the life of the car.
Define the depreciation.
Life = 5; Salvage = 0; Cost = 10000; Factor=2;
depgendb to calculate the depreciation.
Depreciation = depgendb(10000, 1000, 5, 2)
Depreciation = 1×5 103 × 4.0000 2.4000 1.4400 0.8640 0.2960
The large value returned at the final year is the sum of the depreciation over the life time and is equal to the difference between the
Salvage. The value of the asset in the final year is computed as (