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<< Click to Display Table of Contents >> DDB (double-declining balance depreciation) |
Syntax:
DDB(Cost, Salvage, Life, Per [, Factor])
Description:
This returns the depreciation of an asset for the specified period, using the double-declining balance method (or a variable-declining balance method if Factor is specified).
Cost = Initial cost of asset
Salvage = Salvage value (value at the end of the depreciation)
Life = Life of asset (in number of periods)
Per = Period to evaluate (in the same time unit as Life)
Factor (optional) = Rate at which the balance declines (2 if omitted)
Example:
In the case of a machine purchased for €200,000 that is used for 10 years and then has a salvage value of €10,000, the following annual depreciation amount must be applied for the first year:
DDB(200000, 10000, 10, 1) returns €40,000
For the second year:
DDB(200000, 10000, 10, 2) returns €32,000,
etc.
See also: