Suppose a company is buying a car at a cost of $20,000 and it is expected to run the car for 10 years. After that 10 years the car will be worth $4,000. To calculate the Straight Line Depreciation make a excel sheet with three fields
- Cost of the car in B1
- Salvage(Estimated worth after its life) in B2
- Life in B3
To calculate the Straight Line Depreciation we are going to us MS Excel’s built in SLN(Cost, Salvage, Life) function.
Just type =SLN(B1, B2, B3) in B5 and you have the Straight Depreciation value.