HP 30B Depreciation Example

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