Table 1-16 Amortization example
For more information on amortization, refer to the section titled, Amortization in chapter 6,
Time Value of Money Calculations.
A metalworking machine, purchased for 10,000.00, is to be depreciated over five years. Its
salvage value is estimated at 500.00. Using the straight-line method, find the depreciation
and remaining depreciable value for each of the first two years of the machine's life.
Table 1-18 Calculating the depreciation
Table 1-17 Depreciation keys
Expected useful life of the asset.
Declining balance factor entered as a
Depreciable cost of the asset at acquisition.
Salvage value of the asset.
Declining Balance depreciation.
- 1 ,388.36
Displays the balance
Inputs cost of the item.
Inputs the salvage value of the
Inputs the useful life of the asset.
Depreciation of the asset in year
At a Glance...