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Returns the depreciation of an asset for a specified period using the fixed-declining balance method.

Syntax

DB(cost,salvage,life,period,month)

Cost   is the initial cost of the asset.

Salvage   is the value at the end of the depreciation (sometimes called the salvage value of the asset).

Life   is the number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).

Period   is the period for which you want to calculate the depreciation. Period must use the same units as life.

Month   is the number of months in the first year. If month is omitted, it is assumed to be 12.

Remarks

• The fixed-declining balance method computes depreciation at a fixed rate. DB uses the following formulas to calculate depreciation for a period:

  (cost - total depreciation from prior periods) * rate

  where:

  rate = 1 - ((salvage / cost) ^ (1 / life)), rounded to three decimal places

• Depreciation for the first and last periods is a special case. For the first period, DB uses this formula:

  cost * rate * month / 12

• For the last period, DB uses this formula:

  ((cost - total depreciation from prior periods) * rate * (12 - month)) / 12

Example 1

The example may be easier to understand if you copy it to a blank worksheet.