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Calculate the depreciation value of an asset over a given period, using the double declining balance method or another specified method.
Syntax
DDB(cost,salvage,life,period,factor)
cost is the original value of the asset.
salvage is the value of the asset at the end of the depreciation period ( Also known as asset salvage value).
life is the depreciation period (sometimes also called the useful life of the asset).
period is the period for which depreciation value needs to be calculated. Period must use the same units as life.
factor is the balance deceleration rate. If factor is omitted, 2 (double declining balance method) is assumed.
Note that these five parameters must be positive number.
Description
￭The double declining balance method calculates depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in subsequent periods. DDB uses the following public methods
FormulaCalculate the depreciation value of a period: ( (Original value of the asset - Residual value of the asset) - Total depreciation value in the previous stage) * (Balance depreciation rate/life cycle)
￭If you do not want to use the double declining balance method, change the balance declining rate.
￭ When depreciation is greater than the declining balance calculated value , if you want to convert to the straight-line declining balance method, use the VDB function.
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