Microsoft Office Tutorials and References
In Depth Information
Depreciating the Finer Things in Life
Figure 6-2:
Depreciating
an asset.
Calculating straight line depreciation
The SLN function calculates the depreciation amount for each period of the
life of the asset. The arguments are simple: just the cost, salvage, and the
number of periods. In Figure 6-2, each cell in the range D9:D20 has the same
formula: =SLN($B$2,$B$3,$B$4). Because straight line depreciation
provides an equal amount of depreciation to each period, it makes sense that
each cell uses the formula verbatim. The answer is the same regardless of
the period (this approach differs from the accelerated depreciation methods
that follow).
Using dollar signs ($) in front of column and row indicators fixes the cell
address so it won’t change.
Here’s how to use the SLN function:
1. Enter three values in a worksheet:
•Costofanasset
•Salvagevalue(alwayslessthantheoriginalcost)
•Numberofperiodsinthelifeoftheasset(usuallyanumberof
years)
2. Enter =SLN( to begin the function entry.
3. Click the cell that has the original cost, or enter its address.
4. Enter a comma ( ,).
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