FormuladrillStraight-line depreciation
An Excel formula exercise from Formuladrill. Solve it with a formula bar on a live sheet in your browser, and it is checked the moment you submit.
The task
Calculate the yearly straight-line depreciation of the equipment: cost minus salvage value, spread evenly over its useful life. Answer in B4.
What this exercise teaches
Straight-line depreciation spreads the loss in value evenly, the default method in most financial statements.
A hint if you get stuck
SLN(cost, salvage, life) does it, or write (cost minus salvage) divided by life.
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