HP 10bII+ - Page 92

Depreciation84
To perform a depreciation calculation:
1. Enter the original cost of the asset, using Ï.
2. Enter the salvage value of the asset, using FV. If the salvage value is zero, press
:É.
3. Enter the expected useful life of the asset (in years), followed by Ù.
4. If the declining-balance method is being used, enter the declining-balance factor (as a
percentage), followed by Ò. For example, 1-1/4 times the straight-line rate — 125
percent declining-balance — would be entered as 125.
5. Key in the number of the year for which depreciation is to be calculated followed by the
desired depreciation method:
• ]{ for depreciation using the straight-line method.
•
]u for depreciation using the sum-of-the-years digits method.
•
]x for depreciation using the declining-balance method.
]{, ]u, and ]x each place the amount of depreciation in the display,
and the TVM and X annunciators are displayed. Press \« to display the remaining
depreciable value (the book value less the salvage value). After pressing \« to
display the remaining depreciable value, note the X annunciator changes to Y.
Example 1
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 7-2.
Table 7-2 Depreciation example using SL
Keys Display Description
]OJ
TVM CLR (message flashes
then disappears)
Clears TVM registers.
J::::Ï
10,000.00 Enters 10,000.00 for the depreciable cost
of the item in the selected format.
V::É
500.00 Enters 500.00 for the salvage value of
the item in the selected format.