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174 Section 13: Investment Analysis

File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 174 of 275

Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm

RPN Mode:

6. Key in the year desired then press \.

7. Key in the number of months in the first year and press t.

The display

will show the amount of depreciation for the desired year. If desired, press

~ to see the remaining depreciable value then press

:$:3=~-:M- to find the total depreciation from the

first year through the current year.

ALG Mode:

6. Key in the year desired then press ³.

7. Key in the number of months in the first year and press t.* The display

will show the amount of depreciation for the desired year. If desired, press

~ to see the remaining depreciable value then press

:$=:3-~-:M³ to find the total depreciation from

the first year through the current year.

8. Press t for the amount of depreciation and 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.

Note: If the number of months in the first calendar year is less than 12, the

amount of depreciation in the 1st year will be less than a full year’s

depreciation. The actual number of years that depreciation will occur is

equal to the life +1. For example, a drill has a life of 3 years and is

purchased 3 months before the year-end. The following time diagram shows

that depreciation will occur over 4 calendar years.

Example 1:

A property has just been purchased for $150,000. The purchase

price is allocated between $25,000 for land and $125,000 for improvements

(building). The remaining useful life of the building is agreed to be 25 years. There

is no salvage value forecasted at the end of the useful life of the building. Thus, the

depreciable value and book value is $125,000.

The building was acquired 4 months before the end of the year. Using straight-line

depreciation, find the amount of depreciation and remaining depreciable value for

the 1st, 2nd, 25th, and 26th years. What is the total depreciation after 3 years

The display will pause showing the year number before showing the amount of depreciation

for that year.

HP 12C User Manual

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