Table 11-2 Depreciation Menu Items

Item

Description

 

 

Life

The expected useful life of the asset in years.

 

 

Start

Start refers to the date or month in which the asset is first placed into service.

 

Depending on the type of depreciation, this can be the month (1-12), or, in the

 

case of French Straight-line and Amort F, the actual date in the selected format.

 

Note: for non-French depreciations, if the asset was placed into service in the

 

middle of March, for example, enter 3.5 for Start.

 

 

Cost

The depreciable cost of the asset at acquisition.

 

 

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 11-3.

Table 11-3

Straight 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 ).

<100

 

Inputs 10,000.00 for the cost of the item.

00I

 

 

 

 

 

 

<500

I

Inputs 500.00 for the salvage value of the item.

Depreciation 67