Table 1-16 Amortization example

KeysDisplayDescription

4

-1,388.36

Displays interest.

 

 

 

 

4

13,836.22

Displays the balance

 

amount.

For more information on amortization, refer to the section titled, Amortization in chapter 6, Time Value of Money Calculations.

Depreciation

Table 1-17 Depreciation keys

Keys Description

ÙExpected useful life of the asset.

ÒDeclining balance factor entered as a percentage.

ÏDepreciable cost of the asset at acquisition.

ÉSalvage value of the asset.

]{ Straight-line depreciation.

]x Sum-of-the-years’-digits depreciation.

]u Declining Balance depreciation.

A metalworking machine, purchased for 10,000.00, is to be depreciated over five years. Its salvage value is estimated at 500.00. Using the straight-line method, find the depreciation and remaining depreciable value for each of the first two years of the machine's life.

Table 1-18

Calculating the depreciation

 

 

 

 

 

 

Keys

 

Display

Description

 

 

 

J::::Ï

10,000.00

Inputs cost of the item.

 

 

 

 

 

V::É

 

item.

 

 

500.00

Inputs the salvage value of the

 

 

 

VÙ

5.00

Inputs the useful life of the asset.

 

 

 

 

 

J]{

 

one.

 

 

1,900.00

Depreciation of the asset in year

 

 

 

 

At a Glance... 9