HP 0012C-90001 User Manual page 69

Example: A metalworking machine, purchased for $10,000, is depreciated over 5 Example: Example: Example:
years. Its salvage value is estimated at $500. Find the depreciation and remaining
depreciable value for the first 3 years of the machine's life using the
declining-balance method at double the straight-line rate (200 percent
declining-balance).
Keystrokes Keystrokes
Keystrokes Keystrokes
10000$
500M
5w
200¼
1f#
~
2f#
~
3f#
~
To calculate depreciation and the remaining depreciable value when the
acquisition date of the asset does not coincide with the beginning of the fiscal
accounting year, refer to the procedures in Section 13. That section also includes a
procedure for depreciation calculations when changing from the declining-balance
method to the straight-line method, and a procedure for calculating excess
depreciation.
Section 4: Section 4: Additional Financial Functions Additional Financial Functions
Section 4: Section 4: Additional Financial Functions Additional Financial Functions
Display Display
Display Display
10,000.00 Enters original cost.
500.00 Enters salvage value.
5.00 Enters expected useful life.
200.00 Enters declining-balance factor.
4,000.00 Depreciation in first year.
5,500.00
Remaining depreciable value after
first year.
2,400.00
Depreciation in second year.
3,100.00
Remaining depreciable value after
second year.
1,440.00 Depreciation in third year.
1,660.00 Remaining depreciable value after
third year.
69 69
69 69