Depreciating the entire cost
Salvage remains at the end. Use cost less salvage as the allocation base.
Compare annual charges and the remaining carrying value
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Step-by-step guide · read-only ·
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Data & tools
Task requirements
Enter separate formulas in E2:E4. B2 is initial cost, B3 is salvage, B4 is whole useful years and B5 is the selected whole year. E2 is one straight-line annual charge. E3 is the SYD charge for B5. E4 is initial cost less all SYD charges for years 1 through B5, including the selected year. Keep calculated amounts unrounded.
Edit an allocation input
Apply a numeric literal to the current worksheet. Cost and salvage use cents; years, fiscal months and elapsed-year boundaries use the units shown below. The complete input relationships are checked before a value is applied.
Applied value:
Follow the highlighted cells. Switch to Your turn to edit. Answer cells: E2, E3, E4. Browser calculations may differ from your Excel version.
Selection & formula search
Practice stays on this device. No worksheet data is uploaded.
Notes & examples
About this lesson
Use SLN and SYD on the same cost, salvage and useful life, then reconcile cumulative SYD allocation.
THE QUICK ANSWER01
Use SLN and SYD on the same cost, salvage and useful life, then reconcile cumulative SYD allocation.
E2
=SLN($B$2,$B$3,$B$4)E3
=SYD($B$2,$B$3,$B$4,$B$5)E4
=$B$2-SUM(SYD($B$2,$B$3,$B$4,SEQUENCE($B$5)))For the example data
E2 1000E3 1250E4 3900
Enter each formula in its labeled answer cell. These report formulas perform different jobs; do not fill the first formula down.
How it works
A charge and a carrying value answer different questions
An annual charge is an allocation during one year. Carrying value is what remains after all charges through a cutoff. Subtracting only the selected year from cost omits earlier allocations.
Compare early and late years
The same cost and salvage can produce the same SLN charge but different selected-year SYD charges. Later SYD years receive smaller weights; neither result is a cash-payment schedule.
Keep the declared numeric model
Cost is numeric cents from 1 through 1,000,000; salvage is numeric cents from zero through cost. Useful life is a whole 1–20 years. A selected year is a whole 1–life. A declining factor is 0.5–3. First-year months are whole 1–12. Window endpoints satisfy 0 <= start <= end <= life. Text, blank, Boolean and genuine error inputs cannot stand in for these numbers. Calculated amounts retain full precision.
Read the full step-by-step walkthrough
- Keep one depreciable base
Both methods allocate cost less salvage across the same useful life. Salvage is a remaining value, not an additional annual expense.
- Allocate an equal amount each year
SLN divides the depreciable base into equal annual charges. It does not take a year number because that annual amount is constant.
- Give earlier years greater SYD weight
Year one has weight life, the next has life minus one, and the last has weight one. Divide by the sum of the integers from one through life.
- Include every elapsed year
SEQUENCE(B5) supplies years one through the selected year. SUM collects the corresponding SYD charges; subtract that cumulative amount from the original cost.
- Check the final carrying value
At the end of the full life, total SYD charges equal cost less salvage and the carrying value equals salvage. Equal cost and salvage produce numeric zero charges.
Things to watch
Using only the selected year for carrying value
Include years one through the selected year, rather than subtracting one charge.
Rounding every annual charge
These tasks keep full computed precision. Display formatting and posting a rounded accounting entry are different operations.
About this example
Original bounded source cases checked with real Univer formulas and independent annual recurrences/overlap arithmetic. The VDB switching-window task explicitly uses cumulative zero-origin differences; it does not certify direct fractional-start equivalence or native clients.
Content version 1. Practice checks compare calculated results across different datasets; they do not certify every possible formula.