Excel 2000 in a Nutshell

Name

AMORDEGRC

Synopsis

Use AMORDEGRC (an Analysis ToolPak function) if you are working with data from a French accounting system. This function calculates the depreciation of an asset for the specified accounting period. The depreciation amount will be pro-rated if the asset was purchased in the middle of the specified period. The only difference between this function and AMORLINC is that this function applies a depreciation coefficient based upon the life of the asset. The depreciation coefficient is 1.5 for assets that are three to four years old, 2.0 for assets that are five to six years old, and 2.5 for assets older than six years.

To Calculate

=AMORDEGRC(Cost, Date_Purchased, First_Period, Salvage, Period, Rate, Basis)

All arguments are required.

Cost

Indicates the actual purchase amount for the asset.

Date_Purchased

Indicates the date when the asset was purchased. The argument can be an actual date, a cell reference (e.g., A3), or the results of another function.

First_Period

Indicates the date when the first depreciation period ends. The argument can be an actual date, a cell reference (e.g., A3), or the results of another function.

Period

Indicates the number of the period for which you want to calculate the depreciation of the asset.

Rate

Indicates the rate used to determine the amount of depreciation for the asset.

Example

Figure 12-2 illustrates how AMORDEGRC can be used to determine the amount of depreciation that occurred for each period. The depreciation is calculated ...