
Using Microsoft Excel's Straightline and Sumoftheyears Digits Depreciation FunctionsAnalyzing real estate investments? Making book depreciation calculations? Microsoft Excel can help. Excel's SLN, or straightline depreciation, function lets you easily calculate standard straightline depreciation amounts. And Excel's SYD, or sumoftheyearsdigits, function lets you easily calculate standard sum of the year's digits depreciation. Excel provides handy depreciation functions for making straightline depreciation calculations (which are typically used for real estate depreciation) and for making sumoftheyearsdigits depreciation calculations (which may be used for book depreciation.). As you might expect, both are straightforward to use and easy to understand. Straightline Depreciation calculations with the SLN function The SLN function calculates straightline balance depreciation for an asset given the cost, its salvage value, and its estimated economic life. The DDB function uses the following syntax: SLN (cost, salvage, life) Suppose, for example, that you must calculate the straightline depreciation for equipment that costs $50,000, lasts five years, will have a salvage value of $10,000 at the end of the fifth year. To calculate the depreciation for the first year, you use the following formula: =SLN (50000,10000,5) The function returns the value 8000.00. To calculate the depreciation for the second year, you use the same formula because straightline depreciation is the same for each year period. SumoftheYearsDigits Depreciation calculations with the SYD function The SYD function calculates sumoftheyearsdigits depreciation for an asset given the cost, its salvage value, estimated economic life, and the accounting period for which depreciation is being calculated. The SYD function uses the following syntax: SYD (cost, salvage, life, period) Suppose, for example, that you must calculate the sumoftheyearsdigits depreciation for equipment that costs $50,000, lasts five years, and will have a salvage value of $10,000 at the end of the fifth year. To calculate the depreciation for the first year, use the following formula: =SYD (50000,10000,5,1) The function returns the value 13333.33. To calculate the depreciation for the second year, you use the formula Article Tags: Depreciation Functions, Straightline Depreciation, Depreciation Calculations, Sumoftheyearsdigits Depreciation, Salvage Value Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORSeattle CPA, former tax professor and bestselling computer book author Stephen L. Nelson wrote the MBA's Guide to Microsoft Excel, from which this short article is adapted. Nelson also writes and edits the S Corporations Explained website (homepage), the LLCs Explained website (homepage), and the Fast Easy Incorporation Kits website (homepage).


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