Depreciation

Table 9-2Depreciation Menu Items

 

 

Item

Description

 

 

Salvage

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

 

 

Factor

The declining balance factor as a percentage. This is used for

 

declining balance and declining balance crossover methods only.

 

 

Year

Year for which you want to calculate the depreciation.

 

 

Depreciation

Depreciation in the given year.

 

 

R.Book Value

Remaining book value at the end of the given year.

 

 

R.Depreciable Value

Remaining depreciable value at the end of the given year.

 

 

Depreciation Example

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 9-3.

Table 9-3Straight Line Depreciation Example

Key

Display

Description

:\

 

Opens the Depreciation menu starting with the straight

 

 

 

line method.

 

 

 

<5I

 

Inputs 5 for the useful life.

 

 

 

 

 

 

 

<

 

Displays the current value of Start. 1 (January) is the

 

 

 

default value. For this example, this value remains

 

 

unchanged, since the depreciation of the machine starts

 

 

January 1st (1.00 ).

<1000

0I

Inputs 10,000.00 for the cost of the item.

<500

I

Inputs 500.00 for the salvage value of the item.

<

 

Year for which to calculate the depreciation. Year 1 is

 

 

the default value. To calculate for a year other than 1,

 

 

type a number and press I.

 

 

 

<

 

Depreciation of the asset in year one.

 

 

 

 

 

 

 

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