Calculating straight line depreciation


show more Calculating straight line depreciation provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis show less
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Calculating straight line depreciation

The most straightforward method you can use to calculate depreciation is the straight-line method. As the name implies, the straight-line method assigns depreciation evenly over the economic life of an asset. The starting amount is the asset's purchase price or initial cost, and the ending value is the asset's salvage value. If your asset has an economic life of ten years and the salvage value of zero, for example, the asset will depreciate by 10% each year, until its value reaches zero.

To calculate straight-line depreciation, you use the SLN function. The SLN function calculates the amount of depreciation for a given period, which is usually a year. The SLN function has three arguments: the initial cost of the asset, which is in cell B5, the salvage value of the asset, which is in cell B7, in this case, and the economic life of the asset, which I have in cell B9.

Close the parenthesis and there is the value. You'll see that in each of the five years of this asset's econom...

Calculating straight line depreciation
Video duration: 1m 30s 2h 18m Intermediate

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Calculating straight line depreciation provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis

Subject:
Business
Software:
Excel
Author:
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