In cell D7, which DB depreciation formula uses Cost and Salvage as the Cost and Salvage arguments, Life from B3, Period from A7, and Month as 5?

In cell D7, which DB depreciation formula uses Cost and Salvage as the Cost and Salvage arguments, Life from B3, Period from A7, and Month as 5?

• A. =DB(Cost, Salvage, Life, Period, Month)
• B. =DB(Cost, Salvage, $B$3, A7, 5)
• C. =DB(Cost, Salvage, $B$3, A7)
• D. =DB(Cost, Salvage, $B$3, A7, 12)

Answer: (B)

This question tests how the DB function is wired: cost, salvage, life, period, and months. To match the given setup, the life value must come from B3, the period from A7, and the months argument must be 5. The formula that uses Cost and Salvage for the first two arguments, references the asset life as the cell B3, uses the period from A7, and specifies 5 months is =DB(Cost, Salvage, $B$3, A7, 5). Here, Cost and Salvage provide the financial inputs, $B$3 supplies the asset’s life, A7 provides the period being depreciated, and 5 prorates the depreciation for five months. The other options either omit the months argument, use a different months value (like 12), or reference different cells for life and period, so they don’t fit the described setup.

This question tests how the DB function is wired: cost, salvage, life, period, and months. To match the given setup, the life value must come from B3, the period from A7, and the months argument must be 5. The formula that uses Cost and Salvage for the first two arguments, references the asset life as the cell B3, uses the period from A7, and specifies 5 months is =DB(Cost, Salvage, $B$3, A7, 5). Here, Cost and Salvage provide the financial inputs, $B$3 supplies the asset’s life, A7 provides the period being depreciated, and 5 prorates the depreciation for five months. The other options either omit the months argument, use a different months value (like 12), or reference different cells for life and period, so they don’t fit the described setup.