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use crate::amort_dep_tax::DepreciationPeriod;
use crate::ZERO;
use rust_decimal::prelude::*;
#[cfg(not(feature = "std"))]
extern crate alloc;
#[cfg(not(feature = "std"))]
use alloc::vec::Vec;
/// Straight Line Depreciation - SLN
///
/// Calculates the depreciation schedule for an asset using the straight-line method.
///
/// # Arguments
/// * `cost` - The initial cost of the asset
/// * `salvage` - The estimated salvage value of the asset at the end of its useful life
/// * `life` - The number of periods over which the asset will be depreciated
///
///
/// # Returns
/// * A vector of `DepreciationPeriod` instances representing each period in the depreciation schedule.
///
/// # Examples
/// * $10,000 asset, $1,000 salvage value, 5 year life
/// ```
/// use rust_finprim::amort_dep_tax::sln;
/// use rust_decimal_macros::*;
///
/// let cost = dec!(10_000);
/// let salvage = dec!(1_000);
/// let life = 5;
/// let schedule = sln(cost, salvage, life);
/// ```
pub fn sln(cost: Decimal, salvage: Decimal, life: u32) -> Vec<DepreciationPeriod> {
let depreciation_expense = (cost - salvage) / Decimal::from_u32(life).unwrap();
let mut periods = Vec::with_capacity(life as usize);
let mut remaining_book_value = cost;
for period in 1..=life {
remaining_book_value -= depreciation_expense;
periods.insert(
period as usize - 1,
DepreciationPeriod::new(period, depreciation_expense, remaining_book_value),
);
}
periods
}
/// Declining Balance Depreciation - DB
///
/// Calculates the depreciation schedule for an asset using the declining balance method given a
/// declining balance factor (e.g., double-declining balance).
///
/// # Arguments
/// * `cost` - The initial cost of the assert
/// * `salvage` - The estimated salvage value of the asset at the end of its useful life
/// * `life` - The number of periods over which the asset will be depreciated
/// * `factor` (optional) - The factor by which the straight-line depreciation rate is multiplied (default is 2 for double-declining balance)
/// * `round` (optional) - A tuple specifying the number of decimal places and a rounding strategy for the amounts `(dp, RoundingStrategy)`,
/// default is no rounding of calculations. The final depreciation expense is adjusted to ensure the remaining book value is equal to the salvage value.
/// `rust_decimal::RoundingStrategy::MidpointNearestEven` ("Bankers Rounding") is likely what you are looking for as the rounding strategy.
///
/// If rounding is enabled, the final period will be adjusted to "zero" out the remaining book
/// value to the salvage value.
///
/// # Returns
/// * A vector of `DepreciationPeriod` instances representing each period in the depreciation schedule.
///
/// # Examples
/// * $10,000 asset, $1,000 salvage value, 5 year life
/// ```
/// use rust_finprim::amort_dep_tax::db;
/// use rust_decimal_macros::*;
///
/// let cost = dec!(10_000);
/// let salvage = dec!(1_000);
/// let life = 5;
/// let schedule = db(cost, salvage, life, None, None);
/// ```
pub fn db(
cost: Decimal,
salvage: Decimal,
life: u32,
factor: Option<Decimal>,
round: Option<(u32, RoundingStrategy)>,
) -> Vec<DepreciationPeriod> {
let factor = factor.unwrap_or(Decimal::TWO);
let mut periods = Vec::with_capacity(life as usize);
let mut remain_bv = cost;
let mut accum_dep = ZERO;
for period in 1..=life {
let mut dep_exp = factor * (cost - accum_dep) / Decimal::from_u32(life).unwrap();
if let Some((dp, rounding)) = round {
dep_exp = dep_exp.round_dp_with_strategy(dp, rounding);
}
if dep_exp > remain_bv - salvage {
dep_exp = remain_bv - salvage;
}
accum_dep += dep_exp;
remain_bv -= dep_exp;
periods.insert(period as usize - 1, DepreciationPeriod::new(period, dep_exp, remain_bv));
}
if round.is_some() {
let last = periods.last_mut().unwrap();
last.depreciation_expense += last.remaining_book_value - salvage;
last.remaining_book_value = salvage;
}
periods
}
/// Sum of the Years Digits - SYD
///
/// Calculates the depreciation schedule for an asset using the sum of the years' digits method.
/// The sum of the years' digits method is an accelerated depreciation method that allocates
/// more depreciation expense to the early years of an asset's life.
///
/// # Arguments
/// * `cost` - The initial cost of the asset
/// * `salvage` - The estimated salvage value of the asset at the end of its useful life
/// * `life` - The number of periods over which the asset will be depreciated
/// * `round` (optional) - A tuple specifying the number of decimal places and a rounding strategy for the amounts `(dp, RoundingStrategy)`,
/// default is no rounding of calculations. The final depreciation expense is adjusted to ensure the remaining book value is equal to the salvage value.
/// `rust_decimal::RoundingStrategy::MidpointNearestEven` ("Bankers Rounding") is likely what you are looking for as the rounding strategy.
///
/// If rounding is enabled, the final period will be adjusted to "zero" out the remaining book value to the salvage value.
///
/// # Returns
/// * A vector of `DepreciationPeriod` instances representing each period in the depreciation schedule.
///
/// # Examples
/// * $10,000 asset, $1,000 salvage value, 5 year life
/// ```
/// use rust_finprim::amort_dep_tax::syd;
/// use rust_decimal_macros::*;
///
/// let cost = dec!(10_000);
/// let salvage = dec!(1_000);
/// let life = 5;
/// let schedule = syd(cost, salvage, life, None);
/// ```
pub fn syd(
cost: Decimal,
salvage: Decimal,
life: u32,
round: Option<(u32, RoundingStrategy)>,
) -> Vec<DepreciationPeriod> {
let mut periods = Vec::with_capacity(life as usize);
let mut remain_bv = cost;
let mut accum_dep = ZERO;
let sum_of_years = Decimal::from_u32(life * (life + 1)).unwrap() / Decimal::TWO;
for period in 1..=life {
let mut dep_exp = (cost - salvage) * Decimal::from_u32(life - period + 1).unwrap() / sum_of_years;
if let Some((dp, rounding)) = round {
dep_exp = dep_exp.round_dp_with_strategy(dp, rounding)
};
accum_dep += dep_exp;
remain_bv -= dep_exp;
periods.insert(period as usize - 1, DepreciationPeriod::new(period, dep_exp, remain_bv));
}
if round.is_some() {
let last = periods.last_mut().unwrap();
last.depreciation_expense += last.remaining_book_value - salvage;
last.remaining_book_value = salvage;
}
periods
}
/// MACRS Deprectiation
///
/// Calculates the depreciation schedule for an asset using the Modified Accelerated Cost Recovery
/// System (MACRS method). MACRS is a depreciation method allowed by the IRS for tax purposes.
///
/// # Arguments
/// * `cost` - The initial cost of the asset
/// * `rates` - A slice representing the MACRS depreciation rates for all periods of the asset's
/// life, starting with the first year (period 1) and ending with the last year (period 2). Rates
/// for each period can be found in IRS Publication 946 or other tax resources. The rates should
/// be in decimal form (e.g., 0.20 for 20%).
///
/// # Returns
/// * A vector of `DepreciationPeriod` instances representing each period in the depreciation schedule.
/// The length of the vector will be equal to the number of rates provided.
///
/// # Examples
/// * $10,000 asset, MACRS rates for 5 year life
/// ```
/// use rust_finprim::amort_dep_tax::macrs;
/// use rust_decimal_macros::*;
/// use rust_decimal::Decimal;
///
/// let cost = dec!(10_000);
/// let rates = vec![
/// dec!(0.20),
/// dec!(0.32),
/// dec!(0.1920),
/// dec!(0.1152),
/// dec!(0.1152),
/// dec!(0.0576)
/// ];
/// let schedule = macrs(cost, &rates);
/// ```
pub fn macrs(cost: Decimal, rates: &[Decimal]) -> Vec<DepreciationPeriod> {
let mut periods = Vec::with_capacity(rates.len());
let mut remain_bv = cost;
for (period, &rate) in rates.iter().enumerate() {
let dep_exp = cost * rate;
remain_bv -= dep_exp;
periods.insert(period, DepreciationPeriod::new(period as u32 + 1, dep_exp, remain_bv));
}
periods
}
#[cfg(test)]
mod tests {
use super::*;
use rust_decimal_macros::dec;
#[cfg(not(feature = "std"))]
extern crate std;
#[cfg(not(feature = "std"))]
use std::prelude::v1::*;
#[cfg(not(feature = "std"))]
use std::{assert_eq, println, vec};
#[test]
fn test_macrs() {
let cost = dec!(10_000);
let rates = vec![
dec!(0.20),
dec!(0.32),
dec!(0.1920),
dec!(0.1152),
dec!(0.1152),
dec!(0.0576),
];
let schedule = macrs(cost, &rates);
schedule.iter().for_each(|period| println!("{:?}", period));
assert_eq!(schedule.len(), rates.len());
assert_eq!(schedule[0].depreciation_expense, dec!(2000));
assert_eq!(schedule[0].remaining_book_value, dec!(8000));
assert_eq!(schedule[5].depreciation_expense, dec!(576));
assert_eq!(schedule[5].remaining_book_value, dec!(0));
}
#[test]
fn test_syd() {
struct TestCase {
cost: Decimal,
salvage: Decimal,
life: u32,
round: Option<(u32, RoundingStrategy)>,
expected: Decimal,
}
impl TestCase {
fn new(cost: f64, salvage: f64, life: u32, round: Option<(u32, RoundingStrategy)>, expected: f64) -> Self {
Self {
cost: Decimal::from_f64(cost).unwrap(),
salvage: Decimal::from_f64(salvage).unwrap(),
life,
round,
expected: Decimal::from_f64(expected).unwrap(),
}
}
}
let cases = [
TestCase::new(10_000.00, 1_000.00, 5, None, 600.00),
TestCase::new(
9_000.00,
1_000.00,
5,
Some((2, RoundingStrategy::MidpointNearestEven)),
533.33,
),
TestCase::new(
9_000.00,
1_500.00,
10,
Some((2, RoundingStrategy::MidpointNearestEven)),
136.36,
),
];
for case in &cases {
let schedule = syd(case.cost, case.salvage, case.life, case.round);
schedule.iter().for_each(|period| println!("{:?}", period));
assert_eq!(schedule.len(), case.life as usize);
assert_eq!(schedule.last().unwrap().depreciation_expense, case.expected);
}
}
#[test]
fn test_db() {
struct TestCase {
cost: Decimal,
salvage: Decimal,
life: u32,
factor: Option<Decimal>,
round: Option<(u32, RoundingStrategy)>,
expected: Decimal,
}
impl TestCase {
fn new(
cost: f64,
salvage: f64,
life: u32,
factor: Option<f64>,
round: Option<(u32, RoundingStrategy)>,
expected: f64,
) -> Self {
Self {
cost: Decimal::from_f64(cost).unwrap(),
salvage: Decimal::from_f64(salvage).unwrap(),
life,
factor: factor.map(Decimal::from_f64).unwrap_or(None),
round,
expected: Decimal::from_f64(expected).unwrap(),
}
}
}
let cases = [
TestCase::new(4_000.00, 1_000.00, 5, None, None, 0.00),
TestCase::new(10_000.00, 1_000.00, 5, None, None, 296.00),
TestCase::new(10_000.00, 1_000.00, 10, None, None, 268.435456),
TestCase::new(
10_000.00,
1_000.00,
10,
None,
Some((2, RoundingStrategy::MidpointNearestEven)),
342.18,
),
];
for case in &cases {
let schedule = db(case.cost, case.salvage, case.life, case.factor, case.round);
schedule.iter().for_each(|period| println!("{:?}", period));
assert_eq!(schedule.len(), case.life as usize);
assert_eq!(schedule.last().unwrap().depreciation_expense, case.expected);
}
}
#[test]
fn test_sln() {
let cost = dec!(10_000);
let salvage = dec!(1_000);
let life = 5;
let schedule = sln(cost, salvage, life);
schedule.iter().for_each(|period| println!("{:?}", period));
assert_eq!(schedule.len(), 5);
assert_eq!(schedule[0].depreciation_expense, dec!(1800));
assert_eq!(schedule[0].remaining_book_value, dec!(8200));
}
}