DEPREC_AMORDEGRC Function

Evaluates the depreciation for each accounting period. During the evaluation of the function a depreciation coefficient based on the asset life is applied.

Usage

result = DEPREC_AMORDEGRC(cost, issue, first_period, salvage, period, rate, basis)

Input Parameters

cost—Initial value of the asset.

issue—The date on which interest starts accruing. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User Guide.

first_period—Date of the end of the first period. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User Guide.

salvage—The value of an asset at the end of its depreciation period.

period—Depreciation for the accounting period to be computed.

rate—Depreciation rate.

basis—The method for computing the number of days between two dates. It should be 0, 1, 2, 3, or 4.

0—Actual/Actual

1—US (NASD) 30/360

2—Actual/360

3—Actual/365

4—European 30/360

Returned Value

result—The depreciation for each accounting period. If no result can be computed, NaN is returned.

Input Keywords

Double—If present and nonzero, double precision is used.

Discussion

Function DEPREC_AMORDEGRC computes the depreciation for each accounting period. This function is similar to DEPREC_AMORLINC. However, in this function a depreciation coefficient based on the asset life is applied during the evaluation of the function.

Example

In this example, DEPREC_AMORDEGRC computes the depreciation for the second accounting period using the US (NASD) 30/360 day count method. The security has the issue date of November 1, 1999, end of first period of November 30, 2000, cost of $2,400, salvage value of $300, depreciation rate of 15%.

issue = VAR_TO_DT(1999, 11, 1)

first_period = VAR_TO_DT(2000, 11, 30)

cost = 2400.

salvage = 300.

period = 2

rate = .15

basis = 1

PRINT, DEPREC_AMORDEGRC(cost, issue, first_period, $

   salvage, period, rate, basis

; PV-WAVE prints: 335.000