Example: Declining-Balance Depreciation. A metalworking machine, purchased for $10,000, is to be depreciated over 5 years. Its salvage value is estimated at $500. Find the depreciation and remaining depreciable value for each of the first 3 years of the machine’s life using the double-declining-balance method (200% of the straight-line rate). For comparison, find the straight-line depreciation, as well.

Keys:

Display:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10000

 



 

 

 

 

 

 

 

500

 



 

 

 

 

5

 



 

1 

200 



] 

2

] 

3

] 



Description:

Displays DEPRC menu.

Cost basis.

Salvage value.

Useful life.

First year of depreciation.

DB percentage factor.

Depreciation in first year. (Salvage value ignored at this point.)

Remaining depreciable value after first year

(BASIS - SALV - 4,000).

Depreciation in second year.

Remaining depreciable value after second year.

Depreciation in third year.

Remaining depreciable value after third year.

Straight-line depreciation for each year.

9: Depreciation 117

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