Microsoft Office Tutorials and References
In Depth Information
The VDB function returns the depreciation of an asset for any specified peri-
od, including partial periods, using the double-declining-balance method or
some other specified method. VDB stands for variable declining balance.
The VDB function takes the following arguments:
cost This is the initial cost of the asset.
salvage This is the value at the end of the depreciation period.
life This is the number of periods over which the asset is being de-
preciated. To calculate depreciation for periods smaller than a year,
multiply the number of years by 12, or even 365.
start_period This is the starting period for which you want to cal-
culate the depreciation. start_periodmust use the same units as life.
end_period This is the ending period for which you want to calcu-
late the depreciation. end_periodmust use the same units as life.
factor This is the rate at which the balance declines. If factoris
omitted, it is assumed to be 2, which is the double-declining-balance
method. You change factorif you do not want to use the double-
declining-balance method.
no_switch This is a logical value that specifies whether to switch
to straight-line depreciation when depreciation is greater than with
the declining-balance calculation. If this is FALSE or omitted, Excel
switches to the straight-line method when it becomes more beneficial
to do so. If this value is TRUE, Excel holds on to the DDB method until
the end of life.
Keep in mind that all the arguments listed, except no_switch, must be
positive numbers.
To set up a schedule that shows depreciation for each quarter, you follow
these steps:
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