Excel 2000 in a Nutshell

Name

DDB

Synopsis

Use DDB to determine the amount of depreciation for an asset during the specified time frame. The depreciation is calculated using the double-declining balance method as a default. You can specify a different method by specifying a value for the Factor argument.

To Calculate

=DDB(Cost, Salvage, Life, Period, Factor)

The Factor argument is optional and is only required if you want to use a different factor to determine depreciation. All of the other arguments are required.

Cost

A numeric value that indicates the total amount paid to acquire the asset.

Life

An integer value that indicates the number of periods that the asset will be depreciated over. For example, if you purchase a computer that will have a useful life of five years you would specify a value of 5 for the Life argument.

Period

An integer value that indicates the period that you want to calculate the depreciation for, such as 2 for the second year’s depreciation amount.

Factor

By default, the function uses a Factor value of 2 for double declining balance depreciation. If you want to use a different factor to calculate the depreciation for the asset you can specify the factor here.

Example

Figure 12-5 allows you to compare the depreciation amount calculated for assets using DDB to the results of DB, SYD, and SLN.