DB function calculates fixed declining balance depreciation of an asset given the cost, the residual value, useful life, the settlement period for depreciation is calculated and, where applicable, the number of months during the first year

DB function calculates fixed declining balance depreciation of an asset given the cost, the residual value, useful life, the settlement period for depreciation is calculated and, freshwater pearl, where applicable, the number of months during the first year. (If you're not months, an additional argument, Excel uses this value to 12). DB function uses the following syntax:

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

Take, for example, that the balance of depreciation of fixed sliding scale for equipment that costs $ 50.000, lasts five years, to calculate the residual value of $ 10.000 at the end of the fifth year will be, and has been in operation three months the first year. To calculate the depreciation for the first year, use the following formula:

= DB (50000,10000,5,1,3)

The function returns the value 3437.5. To calculate the depreciation for the second year, pearl bracelet, use the formula

= DB (50000,10000,5,2,3)

The function returns the value 12804.69

Feature of the declining balance method, which calculates the depreciation of fixed
at a fixed interest rate on the estimated cost, residual value and the economic well-founded. Excel calculates this figure by the following formula:

Fixed rate = 1 - ((salvage / cost) ^ (1/life))

then rounds this value to the nearest three decimal places. To calculate the depreciation for the period, multiplied by the cumulative rate of Excel, the amount of depreciation is less than the original cost to date.

NOTE: accumulated depreciation equals the original purchase price less depreciation for prior periods.

Excel uses the change in standard formula of a fixed-declining balance at the first and last. For the first period, Excel calculates the depreciation is calculated as follows:

The first period of depreciation cost = * Monthly / 12

In recent years, Excel calculates the depreciation using the following formula (which is essentially depreciate an asset of its residual value):

Recently, attenuation = ((Cost. accumulated depreciation) * rate * (12-month)) / 12