Calculating Depreciation

[Luqman]

I have an asset which was purchased in 1998 worth 250,000/=
I sold this Asset in 2003. The Depreciation Rate is 10% p.a. for Declining
Balance Method.
How much depreciation is charged from 1998 till 2002.
As per law, depreciation for the year of sale is not calculated.

What excel formula will give me the result.

Cost in 2002 was : 250000
The Accumulated Dep. in 2002 was : 102378 <<<<< This I need to calculate
through Excel Formula
The written down value in 2002 was : 147622

I have given the values so that you can judge what formula will return the
above results.


Best Regards,

Luqman

 

[R.VENKATARAMAN]

I do not know finance


try this

in once cell type 1998 . to the right of it type 250000
next row 1999 the
ab;ove cell * 90%
tlikethis upto 2002 drag
the above cell down till against 2002

the lastcell will be 2002 and to the right of it will be 164025 is this not
value after depreciation.

 

[Dana DeLouis]

Is the financial function "DB" (Declining Balance) the function you need?
Are there any Salvage or Life values?

 

[N Harkawat]

=A1-(A1*(1-0.1)^5)
where A1 houses 250,000 and 5 is the number of years from 1998 thru 2002

 

[Tushar Mehta]

Others have already given you a bunch of options, but why not search XL
for 'depreciation' (w/o the quotes)? You will get quite a few
suggestions. In addition, if using XL2003 and have online search
enabled, you will also see a bunch of templates.

--
Regards,

Tushar Mehta
www.tushar-mehta.com
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