Manual HP 20b business consultant financial calculator (page 58 of 75) (English)

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Depreciation

Table 9-2 Depreciation Menu Items

Item Description

Salvage The salvage value of the asset at the end of its useful life.

Factor The declining balance factor as a percentage. This is used for

declining balance and declining balance crossover methods only.

Year Year for which you want to calculate the depreciation.

Depreciation Depreciation in the given year.

R.Book Value Remaining book value at the end of the given year.

R.Depreciable Value Remaining depreciable value at the end of the given year.

Depreciation Example

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 9-3.

Table 9-3 Straight Line Depreciation Example

Key Display Description

Opens the Depreciation menu starting with the straight

line method.

<5I

Inputs

for the useful life.

Displays the current value of

Start

(January) is the

default value. For this example, this value remains

unchanged, since the depreciation of the machine starts

January 1

(

1.00

<1000

Inputs

10,000.00

for the cost of the item

<500

Inputs

500

for the salvage value of the item

Year for which to calculate the depreciation.

Year 1

the default value. To calculate for a year other than

type a number and press I.

Depreciation of the asset in year one.

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HP 20b business consultant financial calculator Manual

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