How Do You Calculate Double-Declining Depreciation Using Microsoft Excel?
Depreciation is an accounting practice that has many approaches. The straight line method is the most common, but there are cases where companies want to depreciate an item at a much faster rate. This method is called the double-declining depreciation method. A template for setting this up may be done relatively easily in Excel. Divide the Excel spreadsheet into two sections. In the first section, set up a formula for the double-declining rate. The second section will be comprised of the depreciation schedule with the number of years in which the item will be depreciated. Enter titles individually in each cell for each of the amounts needed for determining the double declining rate. They include: asset, salvage, asset life is “x” years, depreciation expense, depreciation rate and double depreciation rate. Leave a blank cell to the right of each title for the value amounts. Determine the amount of the asset and enter it in the blank cell. Figure the salvage amount, which is the expected
