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Step 1
Determine the cost of the asset acquisition. This is the purchase price of the asset.
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Step 2
Ascertain the useful life of the asset. Please consult with the generally accepted accounting principles (GAAP) to determine the asset's useful life.
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Step 3
Establish the salvage value of the asset. Again, consult with the generally accepted accounting principles for guideline to determine the salvage value of an asset.
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Step 4
Open the Microsoft Excel spreadsheet program.
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Step 5
Enter the value obtained from Steps One, Two, and Three. Type each value into its own column and label each column appropriately.
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Step 6
Select the function utility from the individual cell display menu. Make sure the cell where the straight-line depreciation figure resides is chosen.
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Step 7
Choose the "IF" function from the list of available functions. Be sure that the display option is set to "All" or "Logical". Alternatively, a user can simply type "If" into the function search option.
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Step 8
Enter the cell numbers for the values that were previously entered. Assume the following is true and these cell numbers are where the depreciation values were entered: I6 = acquisition cost, J6 = useful life, K6 = salvage value. In the Logical_test box enter the following, "AND(I6<>0,K6<>0,J6<>0)." In the "Value_if_true" box enter the following, "SLN(I6,K6,J6)." And finally in the "Value_if_false" box enter double quotations or "".
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Step 9
Click "OK" and the straight-line depreciation figure will appear in the designated cell. Choose "Save" when the work in Excel is complete.
