Calculator, TI BA II +, Depreciation

Finance Calculator
Texas Instruments BA II +

Depreciation

The depreciation worksheet labels:

Four depreciation methods:
SL = Straight Line Method
SYD = Sum-of-the-years'-digits method
DB = Declining-balance method
DBX = DB method with crossover to SL

Entering data:
LIF = Life of the asset in years
M01 = Starting month
CST = Cost of Asset
SAL = Salvage Value of the asset
YR = Year to compute

Computing results:
DEP = Depreciation for the year
RBV = Remaining Book Value at the end of the year
RDV = Remaining Depreciaiton Value

Problem 1.
In mid-May, a company begins to depreciate a machine with a seven-year life and no salvage value. The machine cost is $100,000.

Solving this problem by using the math equaltion:
Depreciation = (cost - salvage value)/ life
14,285.71 = (100,000-0)/7
Remaining book value = cost - depreciation
85,714.29 = 100,000 - 14,285.71

Solving this problem by using the calculator:
Step 1:
Select Depreciation worksheet. 2nd, Depr (on the #4 key)
Clear worksheet. 2nd, CLR Work

Step 2:
Select SL. 2nd, Depr, 2nd, SET (first row second column). Repeat
2nd, SET until the screen shows SL.

Step3:
SL, Press the Down arrow to LIF
LIF= 7 ENTER
Press Down arrow again to M01
M01 = 1 ENTER
Press Down arrow to CST
CST = 100000 ENTER
Press Down arrow to SAL
SAL = 0
Press Down arrow to YR
YR = 1

Step 4:
Press Down arrow to get:
DEP = 14,285.71
RBV = 85,714.29
RDV = 85,714.29

To find out second year's depreciation:
Press CPT (first row first column), YR = 2
Press Down arrow to find:
DEP = 14,285.71
RBV = 71,428.57
RDV = 71,428.57

For the first year, the depreciation amount is $14,285.71, the remaining book value is $85,714.29, and the remaining depreciable value is $85,714.29.
For the second year, the depreciation amount is $14,285.71, the remaining book value is $71,428.57, and the remaining depreciable value is $71,428.57

Last Updated on 1 May 2002, e-mail any comments to: robert.balik@wmich.edu