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  • Depreciation Formula Excel Template

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    Mustafa Ricky Pramana Se
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    This document provides an example to calculate depreciation for a $3.5 million plant machinery asset over 10 years using the straight-line, unit of production, and double declining balance methods. It details the asset cost, residual value, useful life, lifetime production, and units produced in the first two years to demonstrate the depreciation calculations and results for each method.

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    This document provides an example to calculate depreciation for a $3.5 million plant machinery asset over 10 years using the straight-line, unit of production, and double declining balance methods. It details the asset cost, residual value, useful life, lifetime production, and units produced in the first two years to demonstrate the depreciation calculations and results for each method.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    9 views3 pages

    Depreciation Formula Excel Template

    Uploaded by

    Mustafa Ricky Pramana Se
    This document provides an example to calculate depreciation for a $3.5 million plant machinery asset over 10 years using the straight-line, unit of production, and double declining balance methods. It details the asset cost, residual value, useful life, lifetime production, and units produced in the first two years to demonstrate the depreciation calculations and results for each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Depreciation Excel Template

    Visit: www.educba.com
    Email: info@educba.com
    Let us take the example of plant machinery worth $3.50 million with an estimated useful life of 10 years and a
    residual value of $0.20 million. The machinery is expected to produce 200,000 units over
    its useful life of 10 years. Calculate the depreciation for the first 2 years under:

    Asset Cost $3,500,000


    Residual Value $200,000
    Useful Life of Asset (Years) 10
    Life-Time Production (Units) 200,000
    Units Produced in Year 1 16,000
    Units Produced in Year 2 20,000

    Straight Line Method

    Depreciation is calculated using the formula given below


    Depreciation = (Asset Cost - Residual Value) / Useful Life of Asset

    Depreciation $330,000

    Unit of Production Method

    Depreciation is calculated using the formula given below


    Depreciation = (Asset Cost - Residual Value) / Life-Time Production * Units Produced

    Year 1 Year 2
    Depreciation $264,000 $330,000

    Double Declining Balance Method

    Depreciation is calculated using the formula given below


    Depreciation = 2 * (Asset Cost - Accumulated Depreciation) / Useful Life of Asset

    Year 1 Year 2
    Depreciation $700,000 $560,000
    0 years and a

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