About this lesson
Depreciation with SLN and DB, and the asset roll-forward
Straight line spreads cost less salvage value evenly: =SLN(cost,salvage,life), for example =SLN($B$1,$B$2,$B$3). Diminishing value charges more early on: =DB($B$1,$B$2,$B$3,A6), where the last argument is the year. A roll-forward then goes opening book value + capex − depreciation = closing book value.
Using Google Sheets? Do this lesson in Sheets.
=SLN($B$1,$B$2,$B$3)What you'll practise
Check Saltbush Logistics' depreciation on a new truck fleet with SLN and DB, then roll the fleet's book value forward with the year's capex.
4 steps · 40 points · the cells outlined in gold below
- depreciation
- SLN
- DB
- diminishing value
- fixed asset roll-forward
The data
| A | B | C | |
|---|---|---|---|
| 1 | Cost ($k) | 2,400.0 | |
| 2 | Salvage value ($k) | 300.0 | |
| 3 | Useful life (years) | 6 | |
| 4 | |||
| 5 | Year | Straight line ($k) | Diminishing ($k) |
| 6 | 1 | ||
| 7 | 2 | ||
| 8 | 3 | ||
| 9 | 4 | ||
| 10 | 5 | ||
| 11 | 6 | ||
| 12 | Total | ||
| 13 | |||
| 14 | Fleet roll-forward, FY26 ($k) | ||
| 15 | Opening book value | 5,180.0 | |
| 16 | Capex: new trucks | ||
| 17 | Depreciation: existing fleet | -760.0 | |
| 18 | Depreciation: new trucks | ||
| 19 | Closing book value |