15-9-3

Depreciation

IExample 2

Now calculate the depreciation amount ([SYD]) for the second year (j = 2).

Note

You can also tap [SL] to calculate depreciation using straight-line method, [FP] using fixed- percentage method, or [DB] using declining-balance method.

Each depreciation method will produce a different residual value after depreciation (RDV) for the applicable year (j).

Calculation Formulas

IStraight-Line Method

SL1 =

(PVFV )

×

YR1

 

 

 

 

n

 

 

 

 

 

 

 

 

12

 

 

SLj =

(PVFV )

 

 

 

 

 

 

 

 

 

n

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SLn+1 =

(PV FV )

×

12– YR1

 

 

 

 

n

 

 

 

12

 

 

 

 

 

 

 

 

 

 

(YR1G12)

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