Manuals/calci/DB

DB(C, Salvage, L, P, NoMonths)

Where

• $C$ is the initial cost of an asset,
• $Salvage$ is the value at the end of depreciation,
• $L$ is life of an asset that indicates the number of periods over which the asset is being depreciated,
• $P$ is the period for which depreciation is to be calculated, and
• $NoMonths$ specifies how many months of the year are used in the calculation of the first period of depreciation.

DB() calculates the depreciation of an asset for a specified period using the fixed-declining method.

Description

DB(C, Salvage, L, P, NoMonths)

• Depreciation is the decrease in value of assets. Depreciation of an asset is highest in the first period and decreases in successive periods.
• DB() calculates the depreciation using the fixed-declining balance method.
• If $Salvage$ <0, Calci displays #N/A error message.
• If $C$ ,$L$, $P$, $NoMonths$ <=0, Calci displays #N/A error message.
• If $P$ is not an integer, Calci rounds up the value (e.g. 4.2 is rounded up to 5).

Examples

1. =DB(20000,2000,5,4.5,2) : This example is used to find the yearly depreciation of an asset that costs $20,000 at the start of year 4.5, and has a salvage value of $2,000 after 5 years. The depreciation calculation starts 2 months into year 1.
Displays 2,757.7148 as a result.

2. =DB(10000,1000,5,1,6) : This example is used to find the yearly depreciation of an asset that costs $10,000 at the start of year 1, and has a salvage value of $1,000 after 5 years. The depreciation calculation starts 6 months into year 1.
Displays 1,845.00 as a result.

Related Videos

Fixed Declining Balance Method

See Also

• DDB

References

• Depreciation
• Accelerated Depreciation

• List of Main Z Functions

• Z3 home