HP user manual User's Guide download pdf (Page 17)

At a Glance...

For more information on amortization, refer to the section titled, Amortization in chapter 6,

Time Value of Money Calculations.

Depreciation

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.

-1,388.36 Displays interest.

13,836.22 Displays the balance

amount.

Table 1-16 Amortization example

Keys Display Description

Table 1-17 Depreciation keys

Keys Description

Expected useful life of the asset.

Declining balance factor entered as a

percentage.

Depreciable cost of the asset at acquisition.

Salvage value of the asset.

]{

Straight-line depreciation.

Sum-of-the-years’-digits depreciation.

Declining Balance depreciation.

Table 1-18 Calculating the depreciation

Keys Display Description

J::::Ï

10,000.00 Inputs cost of the item.

V::É

500.00 Inputs the salvage value of the

item.

VÙ

5.00 Inputs the useful life of the asset.

J]{

1,900.00 Depreciation of the asset in year

one.

1 2 ... 12 13 14 15 16 17 18 19 20 21 22 ... 186 187

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HP user manual User's Guide Page 17