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Section 4: Additional Financial Functions 69
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 69 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Example:
A metalworking machine, purchased for $10,000, is depreciated over
5 years. Its salvage value is estimated at $500. Find the depreciation and
remaining depreciable value for the first 3 years of the machine’s life using the
declining-balance method at double the straight-line rate (200 percent
declining-balance).
Keystrokes Display
10000$
10,000.00
Enters original cost.
500M
500.00
Enters salvage value.
5n
5.00
Enters expected useful life.
200¼
200.00
Enters declining-balance factor.
1f#
4,000.00
Depreciation in first year.
~
5,500.00
Remaining depreciable value after
first year.
2f#
2,400.00
Depreciation in second year.
~
3,100.00
Remaining depreciable value after
second year.
3f#
1,440.00
Depreciation in third year.
~
1,660.00
Remaining depreciable value after
third year.
To calculate depreciation and the remaining depreciable value when the
acquisition date of the asset does not coincide with the beginning of the fiscal
accounting year, refer to the procedures in Section 13. That section also includes a
procedure for depreciation calculations when changing from the declining-balance
method to the straight-line method, and a procedure for calculating excess
depreciation.
69


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