Using the double-declining-balance method or other specified method, calculate the depreciation value of an asset over a given period.
grammar
DDB(cost,salvage,life,period,factor)
cost indicates the original asset value.
salvage is the value of the asset at the end of depreciation (also known as the salvage value of the asset).
life is the period of depreciation (sometimes called the useful life of the asset).
period is the period during which the depreciation value needs to be calculated. Period must use the same unit as life.
factor indicates the balance decline rate. If factor is omitted, it is assumed to be 2 (double decreasing balance method).
Note that all five parameters must be positive.
Instructions
■ The double declining balance method calculates depreciation at an accelerated rate. Depreciation is highest in the first phase and decreases in subsequent phases. DDB uses the following public
Formula calculates the depreciation value of a stage: ((original value of the asset – residual value of the asset) – total depreciation value of the previous stage) * (declining balance rate/life cycle)
■ If you do not want to use the double decreasing balance method, change the decreasing balance rate.
■ When depreciation is greater than the decreasing balance calculated value, use the VDB function if you want to switch to the straight-line decreasing balance method.
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