This function returns the depreciation for an accounting period, taking into consideration prorated depreciation, and applies a depreciation coefficient in the calculation based on the life of the assets.
AMORDEGRC(cost, datepurchased, firstperiod, salvage,period,drate, basis)
This function has these arguments:
Cost of the asset
Purchase date of the asset
End date of the first period
Salvage value at the end of the life of the asset
Rate of depreciation
[Optional] Integer representing the basis for day count (Refer to Day Count Basis)
This function returns the depreciation until the last period of the asset life or until the total value of depreciation is greater than the cost of the assets minus the salvage value. The depreciation coefficients are:
Life of assets
Between 3 and 4 years
Between 5 and 6 years
More than 6 years
The depreciation rate will grow to 50 percent for the period proceeding the last period and will grow to 100 percent for the last period. If the life of assets is between 0 (zero) and 1, 1 and 2, 2 and 3, or 4 and 5, the #NUM! error value is returned.
This function differs from AMORLINC, which does not apply a depreciation coefficient in the calculation depending on the life of the assets.
Accepts numeric and DateTime object data. Returns numeric data.
AMORDEGRC(2800,DATE(2003,9,4),DATE(2006,12,31),200,1,0.02,1) gives the result 117.