HP 12C Instruction Manual page 3

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HP 12C Depreciation
To calculate the depreciation after entering these values, key in the number of the year for which the depreciation is to
be calculated and press fV, fÝ or f#. The amount of depreciation is calculated and shown in the
display. To see the remaining depreciable value (book value minus salvage value) press ~.
Practice solving depreciation problems
Example 1: The R&D department of a crystal refinement company spent $28,000 for new equipment for the digital
spectrometer lab. The expected life for this equipment is 12 years, and the salvage value is $2,500.
Calculate the declining balance depreciation for the fifth and eighth years and compare the values to the
straight-line fixed depreciation. Use the DB method with a 2× weight (200%) related to the SL.
Solution: Load the TVM registers with the relevant values and calculate the depreciation for the fifth and eighth years
using the DB method:
28000 $ 2500 M 200 ¼ 12 w 5 f#
8 f#
Keep the TVM registers with previous values and calculate the depreciation using the SL method. As the
straight-line method returns the same depreciation amount for each valid period, it is enough to calculate it
for the first year.
1 fV
Answer: The amount of depreciation with 2× weighted DB method for the 5th year is $2,250.52 and $1,302.38 for
the 8th year. With the same figures, the annual amount of depreciation calculated with the SL method is
$2,125.
Example 2: Professional video equipment bought for $15,000 has a useful life of 8 years with a salvage value of
$1,100. Using the SOYD method, find the amount of depreciation for the fourth year.
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Figure 2
Figure 3
Figure 4
HP 12C Depreciation - Version 1.0