HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 138
Salvage value = 0 so
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138 Section 13: Investment Analysis Note: If the number of months in the first calendar year is less than 12, the amount of depreciation in the 1st year will be less than a full year's depreciation. The actual number of years that depreciation will occur is equal to the life +1. For example, a drill has a life of 3 years and is purchased 3 months before the year end. The following time diagram shows that depreciation will occur over 4 calendar years. Example 1: A property has just been purchased for $150,000. The purchase price is allocated between $25,000 for land and $125,000 for improvements (building). The remaining useful life of the building is agreed to be 25 years. There is no salvage value forecasted at the end of the useful life of the building. Thus, the depreciable value and book value is $125,000. The building was acquired 4 months before the end of the year. Using straight-line depreciation, find the amount of depreciation and remaining depreciable value for the 1st, 2nd, 25th, and 26th years. What is the total depreciation after 3 years? Keystrokes Display fCLEARG 125000$ 25n 1\ 4t ~ t ~ t ~:$:3 +~gi00 fCLEARG 125000$ Salvage value = 0 so FV = 0. 125,000.00 Book value. 25.00 Life. 1.00 Year desired. 1.00 First year: 1,666.67 depreciation, 123,333.33 remaining depreciable value. 2.00 Second year: 5,000.00 depreciation, 118,333.33 remaining depreciable value. 3.00 5,000.00 Third year: depreciation. 11,666.67 Total depreciation through third year. 11,666.67 125,000.00 Book value. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 138 of 209 Dimension: 14.8 cm x 21 cm