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To perform a depreciation calculation:
1.
Enter the original cost of the asset, using
2. Enter the salvage value of the asset, using FV. If the salvage value is zero, press
:É
.
3. Enter the expected useful life of the asset (in years), followed by
4. If the declining-balance method is being used, enter the declining-balance factor (as a
percentage), followed by
percent declining-balance — would be entered as 125.
5. Key in the number of the year for which depreciation is to be calculated followed by the
desired depreciation method:
]{
•
for depreciation using the straight-line method.
]u
•
for depreciation using the sum-of-the-years digits method.
]x
•
for depreciation using the declining-balance method.
]{
]u
,
and the TVM and X annunciators are displayed. Press
depreciable value (the book value less the salvage value). After pressing
display the remaining depreciable value, note the X annunciator changes to Y.
Example 1
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. See
Table 7-2.
Table 7-2 Depreciation example using SL
Keys
]OJ
J::::Ï
V::É
84
Depreciation
Ò
. For example, 1- 1 /4 times the straight-line rate — 125
]x
, and
each place the amount of depreciation in the display,
Display
TVM CLR (message flashes
then disappears)
10,000.00
500.00
Ï
.
\«
Description
Clears TVM registers.
Enters 10,000.00 for the depreciable cost
of the item in the selected format.
Enters 500.00 for the salvage value of
the item in the selected format.
Ù
.
to display the remaining
\«
to
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