AMORDEGRC

AMORDEGRC - this function calculates the amount of depreciation for a settlement period as degressive amortization.

Syntax:

AMORDEGRC(Cost;Date purchased;First period;Salvage;Period;Rate;Basis)

Cost: the acquisition costs.

Date purchased: the date of acquisition.

First period: the end date of the first settlement period.

Salvage: The salvage value of the capital asset at the end of the depreciable life.

Period: the settlement period to be considered.

Rate: the rate of depreciation.

Basis: is chosen from a list of options and indicates how the year is to be calculated.

• 0 or missing - US Method (NASD), 12 months of 30 days each
• 1 - exact number of days in month, exact number of days in year
• 2 - exact number of days in month, year has 360 days
• 3 - exact number of days in month, year has 365 days
• 4 - European Method, 12 months of 30 days each

Example:

The cost is 2000. What is the depreciation on the first period for an asset that was acquired on September 22, 2007, where the end of the first period is December 26, 2007. The salvage value is 300, the depreciation rate is 12 percent and the actual number of days in the months and years are used.

=AMORDEGRC(2000;"9.22.2007";"12.26.2007";300;1;0.12;1) will return 553


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