Sharp EL-738 operation manual 3000, 5000000, Calculating straight-line depreciation

Calculating straight-line depreciation

In April, your company begins depreciation of a commercial building with a 30-year life and no salvage value. The building costs $1,500,000. Calculate the depreciation amount, remaining book value and remaining depreciable value for the third year using the straight-line depreciation method.

Procedure	Key operation		Display
Bring up the initial	s~20
display in NORMAL
mode, and select the
straight-line deprecia-			000
tion method.
Select depreciation	O		SL
calculations.			----------
Enter the number of	i	30 Q	LIFE(N)=
years of depreciation.			3000
Enter the starting	i	4 Q	START MONTH=
month.			400
Enter the cost of asset.	i	1500000 Q	COST(PV)=
			150000000
Enter the salvage value.	i	0 Q	SALVAGE(FV)=
			000
Enter the year for calcu-	i	3 Q	YEAR= 300
lating depreciation value.
Calculate depreciation	i		DEPRECIATE=
for the year.			5000000
Calculate the remaining	i		RBV=
book value.			136250000
Calculate the remaining	i		RDV=
depreciation value.			136250000

Answer: At the third year, the depreciation amount is $50,000, the remaining book value is $1,362,500, and the re- maining depreciable value is $1,362,500.

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