HP 10bII+ Financial manual Depreciation example using Declining Balance Keys

Example 3

A machine was purchased for 5,000 and is to be depreciated over seven years with no salvage value. Using the double declining balance method, what is the depreciation for the first three years of the machine's life? What is the remaining depreciable value?

Table 7-4 Depreciation example using Declining Balance

Keys	Display	Description
]OJ	TVM CLR (message flashes	Clears TVM registers.
	then disappears)
V:::Ï	5,000.00	Enters the depreciable cost of the asset at
		acquisition.
jÙ	7.00	Enters the expected useful life of the asset.
G::Ò	200.00	Enters the double declining balance factor as a
		percentage.
:É	0.00	Enters the salvage value.
J]u	1,428.57	Calculates the depreciation for the first year.
G]u	1,020.41	Calculates the depreciation for the second year.
D]u	728.86	Calculates the depreciation for the third year.
\«	1,822.16	Displays the remaining depreciable value.

Resetting the TVM Keys

To clear the TVM registers and reset the TVM and depreciation functions to their default values, press ]O, followed by J. The messages, TVM CLR and 12 P_yr appear briefly to indicate the TVM registers have been reset.

86 Depreciation