AMORDEGRC is an Excel function that is used to calculate the depreciation of an asset for a specific accounting period using the French accounting method. It is commonly used for financial analysis and reporting purposes.
AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])
|cost:||The initial cost of the asset.|
|date_purchased:||The date when the asset was purchased.|
|first_period:||The first period for which you want to calculate depreciation.|
|salvage:||The estimated salvage value of the asset at the end of its useful life.|
|period:||The accounting period for which you want to calculate depreciation.|
|rate:||The depreciation rate for the asset.|
|[basis]:||(Optional) The basis to use for calculating depreciation. If omitted, it defaults to 0.|
How to Use
To use the AMORDEGRC function, follow these steps:
- Enter the cost of the asset in the
- Enter the date when the asset was purchased in the
- Specify the first accounting period for which you want to calculate depreciation in the
- Enter the estimated salvage value of the asset in the
- Specify the accounting period you want to calculate depreciation for in the
- Enter the depreciation rate in the
- (Optional) If you want to specify a different basis for depreciation, enter it in the
- The AMORDEGRC function will return the depreciation amount for the specified period.
Here’s an example of how to use the AMORDEGRC function:
=AMORDEGRC(10000, "1/1/2023", 1, 2000, 3, 0.2, 1)
This formula calculates the depreciation for an asset with an initial cost of $10,000, purchased on January 1, 2023, using the French accounting method. The first period is 1, the salvage value is $2,000, the depreciation rate is 20%, and the basis is 1 (indicating the French accounting method). It will return the depreciation amount for the third accounting period.
If you need more information about specific terms or concepts used in this function, you can refer to a financial accounting glossary or an Excel documentation resource for clarification.