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Double Declining Balance

  1. #1
    Registered User
    Join Date
    02-28-2007
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    Double Declining Balance

    I am trying to use the DDB formula and in the final year the carrying value does not equal the salvage value. It is off by 217.60. Is there a way I can force the numbers of the last year to equal so that the caryying value equals the salvage value. The numbers I'm dealing with are, Cost=260000, Salvage=20000, Useful Life=5, and the period is just each year(i.e. 1, 2, 3..). Thanks for the help!

  2. #2
    Forum Expert Carim's Avatar
    Join Date
    04-07-2006
    Posts
    4,070
    Hi,

    It is only a rounding issue ...
    To have everything fine, change your factor from 2 to 2.02
    HTH
    Carim


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