Microsoft Office Tutorials and References
In Depth Information
Chapter 33: Accounting Depreciation Functions
Cost is the initial cost of the asset.
Salvage is the value at the end of the economic life of the asset.
Life is the number of periods over which the asset is depreciated.
Per is the year number. It is different for every year.
In this example the initial value of the asset is $55,000, the salvage value
is $10,000, and the number of years, or the lifetime of the asset, is five. Figure 33.2
illustrates the function and Figure 33.3 shows the results for each of the different
FIGURE 33.1 Straight Line Depreciation
FIGURE 33.2 Straight Line Depreciation
FIGURE 33.3 Results and Formulas for the SLD Straight Line Depreciation
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