To perform a depreciation calculation:

1.Enter the original cost of the asset, using Ï.

2.Enter the salvage value of the asset, using FV. If the salvage value is zero, press

:É.

3.Enter the expected useful life of the asset (in years), followed by Ù.

4.If the declining-balance method is being used, enter the declining-balance factor (as a percentage), followed by Ò. For example, 1-1/4 times the straight-line rate — 125 percent declining-balance — would be entered as 125.

5.Key in the number of the year for which depreciation is to be calculated followed by the desired depreciation method:

•]{for depreciation using the straight-line method.

•]ufor depreciation using the sum-of-the-years digits method.

•]xfor depreciation using the declining-balance method.

]{, ]u, and ]xeach place the amount of depreciation in the display, and the TVM and X annunciators are displayed. Press \«to display the remaining

depreciable value (the book value less the salvage value). After pressing \«to display the remaining depreciable value, note the X annunciator changes to Y.

Example 1

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. See Table 7-2.

Table 7-2 Depreciation example using SL

Keys

Display

Description

 

 

 

]OJ

TVM CLR (message flashes

Clears TVM registers.

then disappears)

 

 

 

 

J::::Ï

 

of the item in the selected format.

 

10,000.00

Enters 10,000.00 for the depreciable cost

 

 

 

V::É

500.00

Enters 500.00 for the salvage value of

 

the item in the selected format.

 

 

 

84 Depreciation