Straight-Line Depreciation Example - Texas Instruments BA II PLUS User Manual

Straight-Line Depreciation Example

In mid-March, a company begins depreciation of a commercial
building with a 31½ year life and no salvage value. The building
cost $1,000,000. Use the straight-line depreciation method to
compute the depreciation expense, remaining book value, and
remaining depreciable value for the first two years.
Example: Entering Straight-Line Depreciation Data
Procedure
Set all variables to defaults.
Select Depreciation
worksheet.
Enter life in years.
Enter starting month.
Enter cost.
Leave salvage value as is.
Leave year as is.
Display depreciation amount,
remaining book value, and
remaining depreciable value.
View second year.
Display second year
depreciation data.
For the first year, the depreciation amount is $25,132.28, the
remaining book value is $974,867.72, and the remaining
depreciable value is $974,867.72.
For the second year, the depreciation amount is $31,746.03, the
remaining book value is $943,121.69, and the remaining
depreciable value is $943,121.69.
86
Keystrokes Display
& } !
RST
& p
SL
# !
31.5 LIF =
# !
3.5 M01 =
#
1000000 CST =
!
#
SAL =
#
YR =
#
DEP =
#
RBV =
#
RDV =
#
YR =
%
YR =
#
DEP =
#
RBV =
#
RDV =
BA II PLUS™ Calculator
0.00
P
31.50
P
3.50
P
1,000,000.00
0.00
1.00
Q
25,132.28
Q
974,867.72
Q
974,867.72
1.00
P
2.00
Q
31,746.03
Q
943,121.69
Q
943,121.69