I need to build a double declining formula from scratch for the following inform

Question

I need to build a double declining formula from scratch for the following information.

gross cost 40000
eul 5
salvage value 10000

I should be able to drag the formula from the second year down and it should automatically calculate the depreciation. I am getting stuck as to how to make that work for DDB in the smallest/shortest formula as possible. We can not use the built in Excel formulas.

The formula used for year 1 could be either:

GROSS COST

Gross Cost         40,000 EUL    5 Salvage Value         10,000

The formula used for year 1 could be either:

  

or (this is obviously done in Excel)

Explanation / Answer

Gross Cost 40000 EUL 5 Salvage value 10000 Year Straight line 1              6,000 2              6,000 3              6,000 4              6,000 5              6,000 Double Declining Method Years beginning year Double Declining Depreciation End of year 1            40,000            16,000         24,000 2            24,000              9,600         14,400 3            14,400              4,400         10,000 (Salvage value) Formula= (value at beginning of year/EUL)*2

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