Microsoft Office Tutorials and References

In Depth Information

**Depreciating the Finer Things in Life**

The example in Figure 6-3 is for an asset put into service in August. Cell

D9 has the formula =DB($B$2,$B$3,$B$4,B9,5). The fifth argument is

5, which indicates the first year depreciation covers 5 months — August,

September, October, November, and December.

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

period:

1. Enter three values in a worksheet:

•Costofanasset

•Salvagevalue(alwayslessthantheoriginalcost)

•Numberofperiodsinthelifeoftheasset(usuallyanumber

of years)

2. Enter
=DB(
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.

8. Enter a comma (
,).

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

10. Enter a comma (
,).

11. Enter the number of months within the first year that the depreciation

is applied to.

12. 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, you need to enter

a formula with the DB function in the same number of cells as there are

periods. However, you should make space for an additional period (refer to

Figure 6-3).

Enter the constant arguments of the function with absolute addressing (the

dollar signs used in front of row numbers or column letters). This makes the

function easy to apply across multiple cells by copying the formula. The

references to the pertinent function arguments stay constant.