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EXCEL AMORDEGRC FUNCTION
Excel AMORDEGRC Function Introduction
The AMORDEGRC function returns the linear depreciation of an asset on a prorated basis for each accounting period. The function is identical to AMORLINC, with the exception that a depreciation coefficient is used in the computation based on the asset’s life.
Description of Excel AMORDEGRC Function
Syntax:
=AMORDEGRC( cost, date_purchased, first_period, salvage, period, rate, [basis] )
Parameter:
- The following are the arguments:
Cost :
- The asset’s price.
Date Purcahesd:
- The asset’s acquisition date.
First_period:
- The end date of the first period.
Salvage:
The asset’s salvage values at the end of its useful life.
Period:
The length of time over which the depreciation is to be computed.
Rate:
- The asset’s depreciation rate.
Basis:
- An optional integer parameter is used to specify the financial day count basis. This can be any of the values listed belows.
| Basis | Day Count Basis |
|---|---|
| 0 (or omitted) | US (NASD) 30/360 |
| 1 | actual/actual |
| 2 | actual/360 |
| 3 | actual/365 |
| 4 | European 30/360 |
Step By Step Guide of AMORDEGRC Function
The Excel Amordegrc function is used in the following example spreadsheet to calculate the depreciation of an asset during the first period. The asset was acquired on January 1, 2015, for €150, and the first period expires on September 30, 2015. The asset depreciates at a 20% annual rate and has a salvage value of €20. The 30/360 day count system is used throughout Europe.
Key Points
- #NUM! – Occurs if either: the date purchased is more than the first period; or the given salvage value is greater than the cost.
For the salvage, period, rate, or [base] arguments, invalid numbers are given.
(That is, if any of the following conditions are met: salvage 0, period 0, rate 0, or [base] is any number other than 0, 1, 2, 3, or 4). - #VALUE! – Occurs if the provided date purchased or first period parameters are not valid Excel dates;
Any of the given arguments is not a number.
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