BAFullInstructions0

# BAFullInstructions0

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ent the 2. Press repeatedly to automatically compute and display new values for DEP, RBV, and RDV. Chapter 5: Using the Depreciation Worksheet 45 Example: Declining-Balance with Straight-Line Crossover 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. Use the decliningbalance with straight-line crossover method to compute the depreciation expense, remaining book value, and remaining depreciable value for the first two years. The declining-balance percent is 200. Procedure Keystrokes Select Depreciation worksheet. p Clear worksheet. Display (old contents) (old contents) If necessary, select declining-balance crossover method. (as necessary) DBX (old contents) If necessary, enter declining balance percent. 200 DBX = Enter life in years. 7 LIF = 7.00 Enter starting month. 5.5 M01 = 5.50 Enter cost. 100000 200.00 CST = 100,000.00 Leave salvage value as is. SAL = 0.00 Leave year as is. YR = 1.00 Compute and display depreciation amount, remaining book value and remaining depreciable value. DEP = RBV = RDV = View second year. YR = Compute and display second year depreciation data. DEP = RBV = RDV = 17,857.14 82,142.86 82,142.86 2.00 23,469.39 58,673.47 58,673.47 For the first year, the depreciation amount is \$17,857.14, the remaining book value is \$82,142.86, and the remaining depreciable value is \$82,142.86. For the second year, the depreciation amount is \$23,469.39, the remaining book value is \$58,673.47, and the remaining depreciable value is \$58,673.47. 46 Chapter 5: Using the Depreciation Worksheet Example: Straight-Line Depreciation In mid-March, a company begins depreciation of a commercial building with a 31-1/2 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. Procedure Select Depreciation worksheet. Keystrokes p Clea...
View Full Document

## This homework help was uploaded on 04/03/2014 for the course ECON 203 taught by Professor Petry during the Summer '09 term at University of Illinois, Urbana Champaign.

Ask a homework question - tutors are online