DECL Fox Function,

[Former Member]

Hello,

I'm just trying to understand the DECL function, can some look at below scenario and give their thoughts?

WDV = DECL ( 10000, 0, 25, 1 )

Know I know that

Book Value = 10000

Depreciation Rate = 25%

Period = 1.

What does the 0 represent? I have been doing some example and cannot work it out, like

50 = DECL (100,0,25,2)

50.5 = DECL (100,1,25,2)

Thanks for any assistance

[Former Member · Accepted solution]

The second operand is the residual value. When the residual value is 0 in your example, you depreciate the full amount. Therefore, depreciation = (100 - 0) * 0.25 * 2 = 50. Therefore the result = 100 - 50 = 50.

When you have a residual value of 1, the depreciation = (100 - 1) * .25 * 2 = 49.5. Therefore, the result = 100 - 49.5 = 50.5

[Former Member · Accepted solution]

Thanks Ryan.