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HP 12C Financial calculator User Manual

Page 143

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Section 13: Investment Analysis 143

File name: hp 12c_user's guide_English_HDPMBF12E44

Page: 143 of 209

Printered Date: 2005/7/29

Dimension: 14.8 cm x 21 cm

7. Key in the number of months in first year

*

then press t.

The display will

show the amount of depreciation for the desired year. If desired, press ~
to see the remaining depreciable value, then press :$:3=
~-:M- to find the total depreciation through the current year.

8. Press t for the amount of depreciation then, if desired, press ~ for the

remaining depreciable value for the next year. Repeat this step for the
following years.

9. For a new case press gi00 and return to step 2.

Example: A commercial movie camera is purchased for $12,000. If maintained
properly, the camera has a useful life expectancy of 25 years with $500 salvage
value. Using the sum-of-the-years-digits method, what is the amount of depreciation
and the remaining depreciable value for the 4th and 5th years? Assume the first
depreciation year is 11 months long.

Keystrokes Display

fCLEARG

12000$

12,000.00

Book value.

500M

500.00

Salvage value.

25n

25.00

Life.

4\

4.00

Year desired.

11t

~

4.00
781.41
8,238.71

Fourth year:
depreciation,
remaining depreciable value.

t

~

5.00
746.02
7,492.69

Fifth year:
depreciation,
remaining depreciable value.

*

Refer to straight-line depreciation instruction note, page 137.

The display will pause showing the year number before showing the amount of depreciation

for that year.