Microsoft Office Tutorials and References

In Depth Information

**Depreciating the Finer Things in Life**

SYD returns the depreciation for a single period. Earlier, I showed you that

the SLN function also returns the depreciation per period, but because all

periods are the same, the SLN function didn’t need to have an actual period

entered as an argument.

The SYD function returns a different depreciation amount for each

period, so the period must be entered as an argument. In Figure 6-2,

each formula in the range F9:F20 uses the SYD function but has a

different period as the fourth argument. For example, cell F9 has the

formula =SYD($B$2,$B$3,$B$4,B9), and cell F10 has the formula

=SYD($B$2,$B$3,$B$4,B10). The last argument provides a different value.

Here’s how to use the SYD function to calculate the depreciation for one

period:

1. Enter three values in a worksheet:

•Costofanasset

•Salvagevalue(alwayslessthantheoriginalcost)

•Numberofperiodsinthelifeoftheasset(usuallyanumber

of years)

2. Enter
=SYD(
to begin the function entry.

3. Click the cell that has the original cost, or enter its address.

4. Enter a comma (
,).

5. Click the cell that has the salvage amount, or enter its address.

6. Enter a comma (
,).

7. Click the cell that has the number of periods, or enter its address.

8. Enter a comma (
,).

9. Enter a number for the period for which to calculate the depreciation.

10. Type a
), and press the Enter key.

The
returned value
is the amount of depreciation for the entered period. To

calculate the depreciation for the entire set of periods, enter a formula with

the SYD function into the same number of cells as there are periods. In this

case, each cell has a different period entered for the fourth argument. To

make this type of entry easy to do, enter the first three arguments as

absolute cell addresses (in other words, use the dollar sign ($) in front of the

row and column indicators). Leave the fourth argument in the relative

address format.