Financial Functions
Advanced
DDB Function
Calculate double-declining balance depreciation.
Task:
Calculate depreciation for year 1 using double-declining balance method.
Learning Objectives:
- Learn DDB function
- Understand accelerated depreciation
- Practice asset accounting
Hints
Solve without hints for +5 XP
The data in this exercise
This is the grid you start with. Cell references in the task — B6, C2 — point at the row numbers and column letters below.
| A | B | |
|---|---|---|
| 1 | Parameter | Value |
| 2 | Cost | 24000 |
| 3 | Salvage | 3000 |
| 4 | Life | 10 |
| 5 | Period | 1 |
| 6 | Factor | 2 |
| 7 | DDB |
What this exercise teaches (contains the answer)
DDB calculates depreciation using the double-declining balance method, which accelerates depreciation in early years.