HP 0012C-90001, User Manual

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Section 4: Section 4: Section 4: Section 4: Additional Financial Functions Additional Financial Functions Additional Financial Functions Additional Financial Functions 69 69 69 69
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Printed Date: 2021/6/16 Dimension: 14.8 cm x 21 cm
Example:
Example: Example:
Example: A metalworking machine, purchased for $10,000, is depreciated over 5
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 Display Display Display Display
10000
$
10,000.00 Enters original cost.
500
M 500.00
Enters salvage value.
5
w
5.00 Enters expected useful life.
200
¼ 200.00
Enters declining-balance factor.
1
f#
4,000.00 Depreciation in first year.
~
5,500.00
Remaining depreciable value after
first year.
2 f# 2,400.00 Depreciation in second year.
~
3,100.00 Remaining depreciable value after
second year.
3
f#
1,440.00 Depreciation in third year.
~
1,660.00
Remaining depreciable value after
third year.
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.