Download Sharp EL-120 Specifications

Transcript
Calculating straight-line depreciation
In April, your company begins depreciation of a commercial
building with a 30-year life and no salvage value. The building
costs $1,500,000. Calculate the depreciation amount, remaining
book value and remaining depreciable value for the third year
using the straight-line depreciation method.
Procedure
Key operation
Display
Bring up the initial
display in NORMAL
mode, and select the
straight-line depreciation method.
s~20
Select depreciation
calculations.
O
SL
Enter the number of
years of depreciation.
i 30 Q
LIFE(N)=
Enter the starting
month.
i4Q
START MONTH=
Enter the cost of asset.
i 1500000 Q
COST(PV)=
000
---------3000
400
150000000
Enter the salvage value. i 0 Q
SALVAGE(FV)=
Enter the year for calcu- i 3 Q
lating depreciation value.
YEAR=
Calculate depreciation
for the year.
i
000
300
DEPRECIATE=
5000000
Calculate the remaining i
book value.
RBV=
Calculate the remaining i
depreciation value.
RDV=
136250000
136250000
Answer: At the third year, the depreciation amount is $50,000,
the remaining book value is $1,362,500, and the remaining depreciable value is $1,362,500.
50
3 Financial FunctionsCurrent.indd 50
06.7.10 8:38:47 PM