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Hi. Is there a way to quickly calculate depreciation using reducing balance method, for a particular period, using a specific rate. There is the DB function in excel but, it automatically calculates a rate and doesn’t allow you to use your own rate.
Yes, if you wanted to work out the carrying value of an asset after five years of depreciation using reducing balance method twenty five per cent depreciation you could use following equation original carrying value x [ (100-25)/100]^5.
In other words take away relevant perce ntage from one hundred then divide by a hundred then raise this figure by power of relevant number of years in question and multiply this by original cost.
Thanks man really appreciated. But, this will give me the sum of depreciation expense of 5 years if I deduct the result from original cost. I actually need to calculate the depreciation expense for a particular year. Is there a formula with which I can calculate the expense for the 5th period or any other period? thanks.
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