84 Section 4: Additional Financial Functions
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 84 of 275
Printed Date: 2005/8/1
Dimension: 14.8 cm x 21 cm
Depreciation Calculations
The hp 12c platinum enables you to calculate depreciation and the remaining
depreciable value (book value minus salvage value) using the straight-line,
sum-of-the-years-digits, and declining-balance methods. To do so with any of these
methods:
1. Enter the original cost of the asset, using
$
.
2. Enter the salvage value of the asset, using
M
. If the salvage value is zero,
press 0
M
.
3. Enter the expected useful life of the asset (in years), using
n
.
4. If the declining-balance method is being used, enter the declining-balance
factor (as a percentage), using
¼
. For example, 1.25 times the straight-line
rate — 125 percent declining-balance — would be entered as 125
¼
.
5. Key in the number of the year for which depreciation is to be calculated.
6. Press:
z
fV
for depreciation using the straight-line method.
z
fÝ
for depreciation using the sum-of-the-years digits method.
z
f#
for depreciation using the declining-balance method.
fV
,
fÝ
, and
f#
each place the amount of depreciation in the display.
To display the remaining depreciable value (the book value less the salvage value)
after the depreciation has been calculated, press
~
.
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 Display
10000
$
10,000.00
Enters original cost.
500
M
500.00
Enters salvage value.
5
n
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.
