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50
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 deprecia-
tion method.
s
~
2
0
000
Select depreciation
calculations.
O
SL
----------
Enter the number of
years of depreciation.
i
30
Q
LIFE(N)=
3000
Enter the starting
month.
i
4
Q
START MONTH=
400
Enter the cost of asset.
i
1500000
Q
COST(PV)=
150000000
Enter the salvage value.
i
0
Q
SALVAGE(FV)=
000
Enter t
he year for calcu-
lating depreciation value
.
i
3
Q
YEAR=
300
Calculate depreciation
for the year.
i
DEPRECIATE=
5000000
Calculate the remaining
book value.
i
RBV=
136250000
Calculate the remaining
depreciation value.
i
RDV=
136250000
Answer: At the third year, the depreciation amount is $50,000,
the remaining book value is $1,362,500, and the re-
maining depreciable value is $1,362,500.
3FinancialFunctionsCurrent.indd503FinancialFunctionsCurrent.indd50 06.7.108:38:47PM06.7.108:38:47PM
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