HP 10bII+ Financial manual Depreciation Keys

7 Depreciation

On the 10bII+, depreciation calculations are performed using the functions printed in blue on the keyboard located under the blue bracket titled, DEPRECIATION. Depreciation calculations

are based on data entered into the Time Value of Money (TVM) keys: Ï, É, Ò, and

Ù.

Table 7-1 Depreciation keys

TVM KeyDescription

]OJ Clear TVM memory. Since the TVM and depreciation applications share the same memory, clearing TVM resets depreciation also.

ÙThe expected useful life of the asset in years.

ÏThe depreciable cost of the asset at acquisition.

ÉThe salvage value of the asset at the end of its useful life.

]{	Straight line is a method of calculating depreciation presuming an
	asset loses a certain percentage of its value annually at an amount
	evenly distributed throughout its useful life.
]x	Sum-of-the-years' digits is an accelerated depreciation method.
	In SOYD, the depreciation in year y is (Life-y+1)/SOY of the asset,
	where SOY is the sum-of-the-years for the asset, or, for an asset with a
	5-year life, 5+4+3+2+1=15.
]u	Declining balance is an accelerated depreciation method that
	presumes an asset will lose the majority of its value during the first few
	years of its useful life.

ÒThe declining balance factor as a percentage. This is used for declining balance method.

\« With the calculated depreciation displayed, press \«to display the remaining depreciable value at the end of the given year.

The Depreciation Keys

When entering data for depreciation calculations, results are calculated based on data entered into specific memory registers. When pressed, the keys used for these operations:

•store data.

•enter known data for variables used during calculations.

•calculate unknown variables based on stored data.

Depreciation 83