HP 20b Consultant Financial manual Depreciation Description Method, Soyd

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Depreciation

Brief descriptions of the methods used to calculate depreciation are provided in Table 8-1. Table 8-2 describes the items found in the depreciation sub-menus. For an example calculating depreciation using the straight-line method, see Table 8-3.

Table 8-1Depreciation Methods

Depreciation

Description

Method

 

 

 

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 based on the idea that the years of an asset's

 

useful life are divided by the sum of the years counting

 

backwards. For example, a five year useful life would be

 

shown as 5 + 4 + 3 + 2 + 1= 15. Press 4 /15, then

 

press =to return a 27% depreciation for the first year.

 

In RPN, press 4 I15 /.

 

 

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HP 20b Consultant Financial manual Depreciation Description Method, Soyd