50
Calculating straight-line depreciation
In Apr
il, y
our compan
y begins depreciation of a commercial
b
uilding with a 30-y
ear lif
e and no salv
age v
alue
. The b
uilding
costs $1,500,000.
Calculate the depreciation amount, remaining
book v
alue and remaining depreciab
le v
alue f
or the third y
ear
using the str
aight-line depreciation method.
Pr
ocedure
K
e
y
operation
Displa
y
Br
ing up the initial
displa
y in NORMAL
mode
, and select the
str
aight-line deprecia-
tion method.
s
~
2
0
000
Select depreciation
calculations
.
O
SL
----------
Enter the n
umber of
y
ears of depreciation.
i
30
Q
LIFE(N)=
3000
Enter the star
ting
month.
i
4
Q
START
MONTH=
400
Enter the cost of asset.
i
1500000
Q
COST(PV)=
150000000
Enter the salv
age v
alue
.
i
0
Q
SALVAGE(FV)=
000
Enter t
he y
ear f
or calcu-
lating depreciation v
alue
.
i
3
Q
YEAR=
300
Calculate depreciation
for the y
ear
.
i
DEPRECIATE=
5000000
Calculate the remaining
book v
alue
.
i
RBV=
136250000
Calculate the remaining
depreciation v
alue
.
i
RDV=
136250000
Ans
wer:
At the third y
ear
, the depreciation amount is $50,000,
the remaining book v
alue is $1,362,500, and the re-
maining depreciab
le v
alue is $1,362,500.
3 Financial FunctionsCurrent.indd 50
06.7.10 8:38:47 PM
