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 (
,).