Appendix : Formulas Used 189
PRICE =
Depreciation
Straight-Line Depreciation
Keyboard function:
DPN
j
= for j = 1, 2, …, L
Program for partial first year:
DPN
1
=
DPN
j
= for j = 2, 3, …, L
DPN
L + 1
= RDV
L
L = asset’s useful life expectancy.
SBV = starting book value.
SAL = salvage value.
FA C T = declining-balance factor expressed as a percent-
age.
j = period number.
DPN
j
= depreciation expense during period j.
RDV
j
= remaining depreciable value at end of period j
= RDV
j–1
– DPN
j
where RDV
0
= SBV – SAL
RBV
j
= remaining book value = RBV
j–1
– DPN
j
where
RBV
0
= SBV
Y
1
= number of months in partial first year.
RDV
1
YIELD
200
------------------+
N 1–
DSC
E
------------+
----------------------------------------------------------
CPN
2
------------
1
YIELD
200
------------------+
K 1–
DSC
E
------------+
----------------------------------------------------------
K 1=
N
∑
CPN
2
------------
DCS
E
------------×–+
To Next Page
Loading...
