Question 1

What depreciation functions are available in Excel?

Accepted Answer

Excel provides several built-in depreciation functions: SLN for straight-line, DDB for double-declining balance, SYD for sum-of-years digits, and VDB for variable declining balance. Each function takes the asset cost, salvage value, and useful life as core inputs to calculate periodic depreciation.

Question 2

How do you use the SLN function for straight-line depreciation?

Accepted Answer

The SLN function syntax is =SLN(cost, salvage, life). Enter the asset's original cost, estimated salvage value, and useful life in years. The function returns the same depreciation amount for each period, making it the simplest Excel depreciation function to use.

Question 3

How does the DDB function work for double-declining balance?

Accepted Answer

The DDB function syntax is =DDB(cost, salvage, life, period, factor). It calculates accelerated depreciation using a declining balance method. The optional factor parameter defaults to 2 for double-declining. Each period's expense decreases as the book value declines.

Question 4

What is the VDB function used for?

Accepted Answer

The VDB (Variable Declining Balance) function calculates depreciation for any specified period using the declining balance method. Its syntax is =VDB(cost, salvage, life, start_period, end_period, factor, no_switch). It offers flexibility to handle partial periods and switch to straight-line automatically.

Question 5

How do you create a full depreciation schedule in Excel?

Accepted Answer

Set up columns for year, beginning book value, depreciation expense, accumulated depreciation, and ending book value. Use Excel depreciation functions in the expense column and reference formulas for running totals. Copy formulas down for each year of the asset's useful life to build the complete schedule.

Excel Depreciation Templates

Frequently Asked Questions

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Excel Depreciation Templates

Frequently Asked Questions

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Excel Depreciation Templates

Frequently Asked Questions

1What depreciation functions are available in Excel?

2How do you use the SLN function for straight-line depreciation?

3How does the DDB function work for double-declining balance?

4What is the VDB function used for?

5How do you create a full depreciation schedule in Excel?

Related Calculators

Excel Depreciation Templates

Frequently Asked Questions

1What depreciation functions are available in Excel?

2How do you use the SLN function for straight-line depreciation?

3How does the DDB function work for double-declining balance?

4What is the VDB function used for?

5How do you create a full depreciation schedule in Excel?

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