ModeldrillStraight-line depreciation by asset
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
Three assets are depreciated straight line to zero over their useful lives. Row 4 numbers the years of use. Fill D5:H7 with one formula that charges cost divided by life while the asset is still within its life, and zero after. Then total each year in row 8.
What this exercise teaches
Mixed references make one formula serve every asset and every year. The IF stops depreciation once an asset is fully written off, which a plain cost / life would not do.
A hint if you get stuck
The year number lives in row 4 (lock the row), cost and life live in columns B and C (lock the columns). IF(year <= life, cost / life, 0).
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