15-9-3

Depreciation

kExample 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

kStraight-Line Method

SL1 =

(PV–FV )

× YR1

 

 

n

 

12

SLj =

(PV–FV )

 

 

 

 

n

 

 

SLn+1 =

(PV–FV )

× 12– YR1

 

 

n

 

12

 

 

 

 

(YR1G12)

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