What If Analysis???

[Jeanie]

I need some help with a depreciation problem that needs a
"what if" formula:
The life of the asset is 4 years and the depreciation
can not go below $26,000. On the third year the
depreciation expense was $33,250. The method being used
is double declining depreciation method-50%.
Any suggestions??????????????
Your answers would be appreciated much.

 

[Norman Harker]

Hi Jeannie!

If depreciated value can't fall below 26000, doesn't this make it the
salvage value?

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

 

[Guest]

yes you are correct, it is the salvage value $26,000.
Do you have any suggestions??????

 

[Norman Harker]

Hi Jeannie!

See Help for DDB.

DDB:
Returns the depreciation of an asset for a specified period, using the
double-declining balance method of some other method that is specified

Syntax:
=DDB(cost,salvage,life,period,factor)

Cost: Cost of the asset
Salvage: Salvage value at the end of the life of the asset
Life: The number of periods over which the asset is being depreciated
(sometimes called the useful life of the asset)
Period: The number of the accounting period
Factor: [Optional] The rate at which the balance declines. If factor
is omitted, it is assumed to be 2 (the double-declining balance
method)


--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.