Which of the following formulas would you use to calculate the fourth year of depreciation of a $100,000 loan that declines to a salvage value of $25,000 after 10 years?
A) DB(100000, 25000, 10, 4)
B) SLN(100000, 25000, 4)
C) DB(100000, 10, 4)
D) SLN(25000, 10, 4)

Question

Quizplus · Accepted Answer

The DB function is used for declining balance depreciation, which is appropriate for calculating depreciation over multiple years. The formula DB(100000, 25000, 10, 4) correctly includes the initial cost, salvage value, useful life, and the specific year for which depreciation is being calculated.

Which of the Following Formulas Would You Use to Calculate