HP 20b Consultant Financial, 30b Professional manual The Depreciation Menu, Cost and salvage values

The Depreciation Menu

Press :\to open the Depreciation menu. To select a depreciation method, press I. See Figure 1. Input the values required for the calculation:

•Asset life

•Starting date or month of the depreciation

•Cost and salvage values

•Declining balance factor (DecBal and DBXover only)

•The first year for which you want to view the depreciation schedule

Scroll through the items of the sub-menu for the selected depreciation method by pressing <or >repeatedly. To change the value of the displayed item, key in a number and press I. For the Start item, enter either a number or an actual date, depending on the type of depreciation selected. Press <repeatedly to view the depreciation schedule.

NOTE: pressing <on the last item of a sub-menu returns you to the Year item and increments it (see Figure 1).

Brief descriptions of the methods used to calculate depreciation are provided in Table 11-1. Table 11-2describes the items found in the depreciation sub-menus. For an example calculating depreciation using the straight-line method, see Table 11-3.

Table 11-1 Depreciation Methods

Depreciation Method	Description
Sline	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.
SOYD	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.
DecBal	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.
DBXover	Declining balance crossover is an accelerated depreciation method that
	presumes an asset will lose the majority of its value in the first few years of its
	useful life, but that it will revert to a consistent depreciation during the latter part
	of its life, which is then calculated using the straight line method.
French SL	Straight line French. This method of depreciation is similar to the Straight line
	method, except an actual calendar date in mm.dd format is entered in for
	Start= to indicate when the asset was first placed into service.
Amort F	French amortization. This method is an accelerated depreciation method with a
	crossover to the French Straight Line method.

66 Depreciation