HP 12C, User Manual

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194 Section 13: Investment Analysis
File name: HP 12c Pt Converted_user's guide_English_HDP0F123E02_080207 Page: 200 of 281
Printed Date: { 2007/8/2Dimension: 14.8 cm x 21 cm
Excess Depreciation
When accelerated depreciation is used, the difference between total depreciation
charged over a given period of time and the total amount that would have been
charged under straight-line depreciation is called excess depreciation. To obtain
excess depreciation:
RPN Mode:
1. Calculate the total depreciation then press
\
.
2. Key in the depreciable amount (cost less salvage) then press
\
. Key in
the useful life of the asset in years then press
z
. Key in the number of
years in the income projection period then press
§
to get the total
straight-line depreciation charge.
3. Press
-
to get the excess depreciation.
ALG Mode:
1. Calculate the total depreciation then press
-gØ
.
2. Key in the depreciable amount (cost less salvage) then press
z
. Key in
the useful life of the asset in years then press
§
. Key in the number of
years in the income projection period then press
gÙ
to get the total
straight-line depreciation charge.
3. Press
³
to get the excess depreciation.
Example: What is the excess depreciation in the previous example over 7
calendar years
?
(Because of the partial first year, there are 6.5 years depreciation
in the first 7 calendar years.)
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
9429.56
\
9429.56
-gØ 9,429.56
Total depreciation through
seventh year.
10500
\
10500
z 10,500.00
Depreciable amount.
8
z
8
§
1,312.50
Yearly straight-line
depreciation.
6.5
§
6.5
gÙ
8,531.25
Total straight-line
depreciation.
- ³
898.31
Excess depreciation