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Excel's Formula - sisman

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Part III: Financial <strong>Formula</strong>s<br />

The VDB (variable declining balance) function is useful if you need to calculate depreciation for<br />

multiple periods, such as when you need to figure accumulated depreciation on an asset that has<br />

been sold. Figure 12-23 shows a worksheet set up to calculate the gain or loss on the sale of some<br />

office furniture. The formula in cell B12 is<br />

=VDB(B2,B4,B3,0,DATEDIF(B5,B6,”y”),B7,B8)<br />

Figure 12-23: Using the VDB function to calculate accumulated depreciation.<br />

The formula computes the depreciation taken on the asset from the date it was purchased until<br />

the date it was sold. The DATEDIF function is used to determine how many years the asset has<br />

been in service.

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