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Compare fixed and accelerated declining balances

Your goal: Keep DB rate rounding, first-year months, DDB factors and the final fiscal stub explicit.

Full task requirements

Enter separate formulas in E2:E5. B2:B5 are cost, salvage, whole useful years and selected year. B6 is the DDB factor; B7 is the number of months in the first fiscal year. E2 is DB for the selected year using B7. E3 is the DDB charge for that whole year using B6; DDB has no month argument. E4 is cost less all DB charges through B5. E5 is the additional DB charge at period life+1 when the first year has fewer than 12 months, otherwise numeric zero. Do not force the DB ending balance to equal salvage.

Six months in the first fiscal yearIdentify the depreciable base0 cells selected
Read cost, salvage, life and period controls beside their original A labels. Keep fractional inputs and model policies. Calculated results appear after your formulas pass.
Click or drag source cells; selected cells change color Drag from selected cells to deselect.
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Step 1 of 4

Identify the depreciable base

Select the source cells in the worksheet, then enter your prediction below.

Rules for this step

Select initial cost and salvage. The depreciable base retains currency precision; equal values produce numeric zero.

0 cells selected