Question

Calculate depreciation using the following data: 

Hint:

If Salvage value is greater than Cost, SLN returns a negative depreciation value.

Answer 1

Using SLN formula: \[ \text{Depreciation} = \frac{\text{Cost} - \text{Salvage}}{\text{Useful life}} \] \[ = \frac{5,000 - 10,000}{5} = \frac{-5,000}{5} = ₹(-1,000) \] Excel Formula: \[ \text{=SLN(5000,10000,5)} \]