Documentation

depgendb

General declining-balance depreciation schedule

Syntax

Depreciation = depgendb(Cost,Salvage,Life,Factor)

Arguments

 Cost Cost of the asset. Salvage Estimated salvage value of the asset. Life Number of periods over which the asset is depreciated. Factor Depreciation factor. Factor = 2 uses the double-declining-balance method.

Description

Depreciation = depgendb(Cost,Salvage,Life,Factor) calculates the declining-balance depreciation for each period.

Examples

collapse all

A car is purchased for \$10,000 and is to be depreciated over five years. The estimated salvage value is \$1000. Using the double-declining-balance method, the function calculates the depreciation for each year and returns the remaining depreciable value at the end of the life of the car.

Define the depreciation.

Life = 5;
Salvage = 0;
Cost = 10000;
Factor=2;

Use depgendb to calculate the depreciation.

Depreciation = depgendb(10000, 1000, 5, 2)
Depreciation = 1×5
103 ×

4.0000    2.4000    1.4400    0.8640    0.2960

The large value returned at the final year is the sum of the depreciation over the life time and is equal to the difference between the Cost and Salvage. The value of the asset in the final year is computed as (Cost - Salvage) = Sum_Depreciation_Upto_Final_Year.