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9
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.
4
-1,388.36 Displays interest.
4
13,836.22 Displays the balance
amount.
Table 1-16 Amortization example
Keys Display Description
Table 1-17 Depreciation keys
Keys Description
Ù
Expected useful life of the asset.
Ò
Declining balance factor entered as a
percentage.
Ï
Depreciable cost of the asset at acquisition.
É
Salvage value of the asset.
]{
Straight-line depreciation.
]x
Sum-of-the-years’-digits depreciation.
]u
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.
5.00 Inputs the useful life of the asset.
J]{
1,900.00 Depreciation of the asset in year
one.
17


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