HP user manual User's Guide download pdf (Page 92)

Depreciation84

To perform a depreciation calculation:

1. Enter the original cost of the asset, using Ï.

2. Enter the salvage value of the asset, using FV. If the salvage value is zero, press

:É.

3. Enter the expected useful life of the asset (in years), followed by Ù.

4. If the declining-balance method is being used, enter the declining-balance factor (as a

percentage), followed by Ò. For example, 1-1/4 times the straight-line rate — 125

percent declining-balance — would be entered as 125.

5. Key in the number of the year for which depreciation is to be calculated followed by the

desired depreciation method:

• ]{ for depreciation using the straight-line method.

•

]u for depreciation using the sum-of-the-years digits method.

•

]x for depreciation using the declining-balance method.

]{, ]u, and ]x each place the amount of depreciation in the display,

and the TVM and X annunciators are displayed. Press \« to display the remaining

depreciable value (the book value less the salvage value). After pressing \« to

display the remaining depreciable value, note the X annunciator changes to Y.

Example 1

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. See

Table 7-2.

Table 7-2 Depreciation example using SL

Keys Display Description

]OJ

TVM CLR (message flashes

then disappears)

Clears TVM registers.

J::::Ï

10,000.00 Enters 10,000.00 for the depreciable cost

of the item in the selected format.

V::É

500.00 Enters 500.00 for the salvage value of

the item in the selected format.

1 2 ... 87 88 89 90 91 92 93 94 95 96 97 ... 186 187

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HP user manual User's Guide Page 92