Sharp EL738C EL-738 Operation Manual - Page 51

Calculating straight-line depreciation

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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 ~ 2 0 000 Select depreciation calculations. O SL ---------- Enter the number of i 30 Q years of depreciation. 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 the year for calcu- i 3 Q lating depreciation value. YEAR= 300 Calculate depreciation i for the year. DEPRECIATE= 5000000 Calculate the remaining i book value. RBV= 136250000 Calculate the remaining i depreciation value. RDV= 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

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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.