How Do You Calculate Straight-Line Depreciation Using Microsoft Excel?
Microsoft Excel has many useful functions that make a person or business more productive. One such function is the calculation of straight-line depreciation. Basic accounting knowledge and a working knowledge of Microsoft Excel are all that it takes to make this calculation a snap. Determine the cost of the asset acquisition. This is the purchase price of the asset. Ascertain the useful life of the asset. Please consult with the generally accepted accounting principles (GAAP) to determine the asset’s useful life. Establish the salvage value of the asset. Again, consult with the generally accepted accounting principles for guideline to determine the salvage value of an asset. Open the Microsoft Excel spreadsheet program. Enter the value obtained from Steps One, Two, and Three. Type each value into its own column and label each column appropriately. Select the function utility from the individual cell display menu. Make sure the cell where the straight-line depreciation figure resides is
