Texas Instruments BA-20 Profit Manager User Manual - Page 65

Example: Computing Straight-Line Depreciation, Access Depreciation

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Example: Computing Straight-Line Depreciation In mid-March, a company begins depreciation of a commercial building with a 31½ year life and no salvage value. The building cost $1,000,000. Use the straight-line depreciation method to compute the depreciation expense, remaining book value, and remaining depreciable value for the first two years. To Access Depreciation worksheet. Enter life in years. Enter starting month. Enter cost. Leave salvage value as is. Leave year as is. Display depreciation amount, remaining book value, and remaining depreciable value. View second year. Display second year depreciation data. Press & p Display SL # 31.5 ! LIF = 31.50 # 3.5 ! M01 = 3.50 # 1000000 ! CST = 1,000,000.00 # SAL = 0.00 # YR = 1.00 # DEP = 25,132.28* # RBV = 974,867.72* # RDV = 974,867.72* # YR = 1.00 % YR = 2.00 # DEP = 31,746.03* # RBV = 943,121.69* # RDV = 943,121.69* Answer: For the first year, the depreciation amount is $25,132.28, the remaining book value is $974,867.72, and the remaining depreciable value is $974,867.72. For the second year, the depreciation amount is $31,746.03, the remaining book value is $943,121.69, and the remaining depreciable value is $943,121.69. Depreciation Worksheet 61

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Depreciation Worksheet
61
Example: Computing Straight-Line Depreciation
In mid-March, a company begins depreciation of a commercial building
with a 31½ year life and no salvage value. The building cost $1,000,000.
Use the straight-line depreciation method to compute the depreciation
expense, remaining book value, and remaining depreciable value for the
first two years.
Answer:
For the first year, the depreciation amount is $25,132.28, the
remaining book value is $974,867.72, and the remaining depreciable
value is $974,867.72.
For the second year, the depreciation amount is $31,746.03, the
remaining book value is $943,121.69, and the remaining depreciable
value is $943,121.69.
To
Press
Display
Access Depreciation
worksheet.
& p
SL
Enter life in years.
#
31.5
!
LIF =
31.50
Enter starting month.
#
3.5
!
M01 =
3.50
Enter cost.
#
1000000
!
CST =
1,000,000.00
Leave salvage value as is.
#
SAL =
0.00
Leave year as is.
#
YR =
1.00
Display depreciation
amount, remaining book
value, and remaining
depreciable value.
#
#
#
DEP =
RBV =
RDV =
25,132.28
*
974,867.72
*
974,867.72
*
View second year.
#
%
YR =
YR =
1.00
2.00
Display second year
depreciation data.
#
#
#
DEP =
RBV =
RDV =
31,746.03
*
943,121.69
*
943,121.69
*