Section 13: Investment Analysis 139
Example: An electron beam welder which costs $50,000 is purchased 4 months
before the end of the accounting year. What will the depreciation be during the
first full accounting year (year 2) if the welder has a 6 year depreciable life, a
salvage value of $8,000 and is depreciated using the declining-balance
depreciation method? The declining-balance factor is 150%.
Sum-of-the-Years-Digits Depreciation
The following HP 12C Platinum program (written in RPN mode) calculates the
sum-of-the-years-digits depreciation for the year desired with the acquisition
date occurring at any time during the year.
Keystrokes (RPN mode) Display
fCLEARG
50000$
50,000.00
Book value.
8000M
8,000.00
Salvage value.
150¼
150.00
Declining-balance factor.
6n
6.00
Life.
2\
2.00
Year desired.
4t
2.00
11,458.33
Second year:
depreciation.
KEYSTROKES
(RPN mode)
DISPLAY
KEYSTROKES
(RPN mode)
DISPLAY
f] -
021, 30
fs
000,
n
022, 11
fCLEAR
Î
000,
:0
023, 45 0
1
001, 1
gm
024, 43 35
2
002, 2
gi035
025, 43,33,035
z
003, 10
:2
026, 45 2
?1
004, 44 1
gu
027, 43 31
~
005, 34
:0
028, 45 0
?2
006, 44 2
fÝ
029, 42 24
1
007, 1
t
030, 31
-
008, 30
1
031, 1
?0
009, 44 0
?=0
032, 44 40 0