HP 12c Platinum - Full- and Partial-Year Depreciation with Crossover

Section 13: Investment Analysis 141
8. Press t for the amount of depreciation then, if desired, press ~ for
the remaining depreciable value for the next year. Repeat this step for the
following years.
9. For a new case press gi000 and return to step 2.
Example: A commercial movie camera is purchased for $12,000. If maintained
properly, the camera has a useful life expectancy of 25 years with $500 salvage
value. Using the sum-of-the-years-digits method, what is the amount of
depreciation and the remaining depreciable value for the 4th and 5th years?
Assume the first depreciation year is 11 months long.
Full- and Partial-Year Depreciation with Crossover
When calculating declining-balance depreciation it is often advantageous for tax
purposes to switch from declining balance to straight-line depreciation at some
point. This HP 12C Platinum program calculates the optimum crossover point
and automatically switches to straight-line depreciation at the appropriate time.
The crossover point is the end of the year in which the declining-balance
depreciation last exceeds or equals the amount of straight-line depreciation. The
straight-line depreciation is determined by dividing the remaining depreciable
value by the remaining useful life.
Given the desired year and the number of months in the first year, this program
calculates the depreciation for the desired year, the remaining depreciable value,
and the total depreciation through the current year.
Keystrokes (RPN mode) Display
fCLEARG
12000$
12,000.00
Book value.
500M
500.00
Salvage value.
25n
25.00
Life.
4\
4.00
Year desired.
11t
~
4.00
781.41
8,238.71
Fourth year:
depreciation,
remaining depreciable value.
t
~
5.00
746.02
7,492.69
Fifth year:
depreciation,
remaining depreciable value.