Using Excel to Calculate Depreciation

As long as the cost, salvage value, and useful life of the asset are provided in the worksheet, The following functions can be used to determine the applicable depreciation expense. Note that the period must also be entered when calculating depreciation expenses under the sum of the years' digits and double$-$declining balance methods. This allows Excel to determine the proper depreciation for each year of the asset's useful life.

$\backslash$table$[[,$B$,$C$],[14,$Cost,$12400],[15,$Salvage Value,$2400],[16,$Useful Life,$10],[17,$Period,$4],[10,,],[19,=$ SLN $(C14,C15,C16),$Straight$-$Line Depreciation$],[20,=SYD(C14,C15,C16,C17),$Sum of the Years' Digits Depreciation$],[21,=DDB(C14,C15,C16,C17),$Double$-$Declining Balance Depreciation$]]$

Let's assume that we have an asset with a $10-$year useful life, a cost of $$207,000,$ and a salvage value of $$7,000.$ Complete an Excel worksheet in which you calculate depreciation for each of the first TWO years of the asset's useful life under the Straight$-$Line Depreciation Method.

Now repeat the above process, this time using the Sum of the Years' Digits Depreciation Method.

Lastly, repeat the process using the Double$-$Declining Balance Depreciation Method.