HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 147

Section 13: Investment Analysis 147 Example: An electronic instrument is purchased for $11,000, with 6 months remaining in the current fiscal year. The instrument's useful life is 8 years and the salvage value is expected to be $500. Using a 200% declining-balance factor, generate a depreciation schedule for the instrument's complete life. What is the remaining depreciable value after the first year? What is the total depreciation after the 7th year? Keystrokes Display fCLEARH 11000$ 500M 8n 200¼ 1\ 6t ~ t t t t t t :1 t t 0.00 11,000.00 500.00 8.00 200.00 1.00 1.00 1,375.00 9,125.00 2.00 2,406.25 3.00 1,804.69 4.00 1,353.51 5.00 1,015.14 6.00 761.35 7.00 713.62 9,429.56 8.00 713.63 9.00 356.81 Book value. Salvage value. Life. Declining-balance factor. First year depreciation desired. First year: depreciation, remaining depreciable value. Second year: depreciation. Third year: depreciation. Fourth year: depreciation. Fifth year: depreciation. Sixth year: depreciation.* Seventh year: depreciation. Total depreciation through the seventh year. Eight year: depreciation Ninth year: depreciation. * By observation the crossover was year 6. Years 7, 8, and 9 use straight-line depreciation. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 147 of 209 Dimension: 14.8 cm x 21 cm