Description
AmorLINC returns the linear depreciation in a specified year with the accounting years aligned with the firstPeriodEndDate.
Overloads
AmorLINC (cost, purchaseDate, firstPeriodEndDate, salvage, period, rate)
AmorLINC (cost, purchaseDate, firstPeriodEndDate, salvage, period, rate, basis)
Arguments
cost is a positive number or currency specifying the initial cost of the asset.
purchaseDate is a
Date or
DateTime specifying when the asset was purchased.
firstPeriodEndDate is a
Date or
DateTime specifying the end of the first period. This date must be after the purchase date.
salvage is a non-negative number or currency specifying the value of the asset after its useful life. This number must be equal to or less than the cost of the asset.
period is a non-negative number specifying which period the depreciation should be calculated for.
rate specifies the rate at which the asset depreciates.
basis is an optional number specifying the day basis system to use. The following types are supported:
0 - American 30/360 (default)
4 - European 30/360Returns
Action
AmorLINC returns the linear depreciation in a specified year with the accounting years aligned with the firstPeriodEndDate. The depreciation during each year is constant, except for the zeroth and last periods which depend on how far through the year the purchase occurred. The sum of all of the depreciations equals the difference between the purchase price and the salvage price.
Examples
Suppose a machine is purchased for $1500 on April 15, 2000. The machine can be sold for scrap at a price of $250 and depreciates at 10% per year. If the accounting periods start on January 1st of each year, then the first period after the purchase date is January 1, 2001. An actual/actual basis is used.
AmorLINC(1500,DateValue(2000,4,15),DateValue(2001,1,1),250,0,.1,1)
Returns $106.97 (rounded to the nearest cent) as the depreciation for the period of time between April 15, 2000 and December 31, 2000.
AmorLINC(1500,DateValue(2000,4,15),DateValue(2001,1,1),250,1,.1,1)
Returns $150 as the depreciation during the first full year. Note that this is 10% of the $1500 cost.
AmorLINC(1500,DateValue(2000,4,15),DateValue(2001,1,1),250,8,.1,1)
Returns $93.03 (rounded to the nearest cent) as the depreciation for the eighth full year. Note that this value added to the depreciation in the initial partial year equals $150.
Comments
This function is similar to the Excel function of the same name.