Example: Computing Straight-Line Depreciation - Texas Instruments BA II PLUS User Manual

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.
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
Press
& p
# !
31.5
# !
3.5
# !
1000000
#
#
#
#
#
#
%
#
#
#
Display
SL
LIF =
M01 =
CST =
1,000,000.00
SAL =
YR =
DEP =
25,132.28
RBV =
974,867.72
RDV =
974,867.72
YR =
YR =
DEP =
31,746.03
RBV =
943,121.69
RDV =
943,121.69

31.50

3.50

0.00
1.00
*
*
*
1.00

2.00
*
*
*
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