Depreciation; The Depreciation Keys - HP 10bII+ User Manual

7

Depreciation

On the 10bII+, depreciation calculations are performed using the functions printed in blue on
the keyboard located under the blue bracket titled, DEPRECIATION. Depreciation calculations
are based on data entered into the Time Value of Money (TVM) keys:
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Table 7-1 Depreciation keys
TVM Key
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The Depreciation Keys

When entering data for depreciation calculations, results are calculated based on data
entered into specific memory registers. When pressed, the keys used for these operations:
• store data.
• enter known data for variables used during calculations.
• calculate unknown variables based on stored data.
Description
Clear TVM memory. Since the TVM and depreciation applications
share the same memory, clearing TVM resets depreciation also.
The expected useful life of the asset in years.
The depreciable cost of the asset at acquisition.
The salvage value of the asset at the end of its useful life.
Straight line is a method of calculating depreciation presuming an
asset loses a certain percentage of its value annually at an amount
evenly distributed throughout its useful life.
Sum-of-the-years' digits is an accelerated depreciation method.
In SOYD, the depreciation in year y is (Life-y +1)/SOY of the asset,
where SOY is the sum-of-the-years for the asset, or, for an asset with a
5-year life, 5+4+3+2+1=15.
Declining balance is an accelerated depreciation method that
presumes an asset will lose the majority of its value during the first few
years of its useful life.
The declining balance factor as a percentage. This is used for
declining balance method.
With the calculated depreciation displayed, press
display the remaining depreciable value at the end of the given year.
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Depreciation
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