Depreciation Example - HP 20B User Manual

Table 9-2 Depreciation Menu Items
Item
Salvage
Factor
Year
Depreciation
R.Book Value
R.Depreciable Value

Depreciation Example

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 9-3.
Table 9-3 Straight Line Depreciation Example
Key
:\
<5I
<
<1000
0I
<500
I
<
<
Description
The salvage value of the asset at the end of its useful life.
The declining balance factor as a percentage. This is used for
declining balance and declining balance crossover methods only.
Year for which you want to calculate the depreciation.
Depreciation in the given year.
Remaining book value at the end of the given year.
Remaining depreciable value at the end of the given year.
Display
58
Description
Opens the Depreciation menu starting with the straight
line method.
Inputs 5 for the useful life.
Displays the current value of Start . 1 (January) is the
default value. For this example, this value remains
unchanged, since the depreciation of the machine starts
January 1 ( 1.00 ).
st
Inputs 10,000.00 for the cost of the item .
Inputs 500 . 00 for the salvage value of the item .
Year for which to calculate the depreciation. Year 1 is
the default value. To calculate for a year other than 1 ,
I
type a number and press
Depreciation of the asset in year one.
Depreciation
.