Microsoft Office Tutorials and References

In Depth Information

**Depreciation Calculations**

The VDB (variable declining balance) function is useful if you need to calculate depreciation for

multiple periods, such as when you need to figure accumulated depreciation on an asset that has

been sold. Figure 12-23 shows a worksheet set up to calculate the gain or loss on the sale of some

office furniture. The formula in cell B12 is

=VDB(B2,B4,B3,0,DATEDIF(B5,B6,”y”),B7,B8)

Figure 12-23:
Using the VDB function to calculate accumulated depreciation.

The formula computes the depreciation taken on the asset from the date it was purchased until

the date it was sold. The DATEDIF function is used to determine how many years the asset has

been in service.