depfixdb

Fixed declining-balance depreciation schedule

Syntax

Depreciation = depfixdb(Cost,Salvage,Life,Period)

Depreciation = depfixdb(___,Month)

Description

Depreciation = depfixdb(Cost,Salvage,Life,Period) computes the fixed declining-balance depreciation for each Period.

Depreciation = depfixdb(___,Month) adds an optional argument.

Examples

Compute the Fixed Declining-Balance Depreciation

This example shows how to calculate the depreciation for the first five years for a car is purchased for $11,000, with a salvage value of $1500, and a lifetime of eight years.

Depreciation = depfixdb(11000, 1500, 8, 5)

Depreciation = 1×5
103 ×

    2.4251    1.8904    1.4737    1.1488    0.8955

Input Arguments

Cost — Initial value of the asset

numeric

initial value of the asset, specified as a scalar numeric.

Data Types: double

Salvage — Salvage value of the asset

numeric

Salvage value of the asset, specified as a scalar numeric.

Data Types: double

Life — Life of the asset in years

numeric

life of the asset in years, specified as scalar numeric.

Data Types: double

Period — Number of years to calculate

integer

Number of years to calculate, specified as scalar integer.

Data Types: double

Month — Number of months in the first year of asset life

12 (default) | numeric

(Optional) Number of months in the first year of asset life, specified as a scalar numeric.

Data Types: double

Output Arguments

Depreciation — Depreciation

vector

Depreciation, returned as the fixed declining-balance depreciation for each Period.

More About

Fixed Declining-Balance Depreciation Schedule

A fixed declining-balance depreciation schedule is a method of calculating depreciation that applies a constant percentage rate to the book value of an asset at the beginning of each accounting period.

This approach results in a larger depreciation expense in the earlier years of the asset's life, gradually decreasing the expense in subsequent years. It is particularly useful for assets that are expected to lose value more quickly in their initial years of usage.

Version History

Introduced before R2006a