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repeatedly to automatically compute and display new values for
DEP, RBV, and RDV. Chapter 5: Using the Depreciation Worksheet 45 Example: DecliningBalance with StraightLine Crossover
In midMay, a company begins to depreciate a machine with a sevenyear
life and no salvage value. The machine cost is $100,000. Use the decliningbalance with straightline crossover method to compute the depreciation
expense, remaining book value, and remaining depreciable value for the
first two years. The decliningbalance percent is 200.
Procedure Keystrokes Select Depreciation
worksheet. p Clear worksheet. Display
(old contents)
(old contents) If necessary, select
decliningbalance
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: StraightLine Depreciation
In midMarch, a company begins depreciation of a commercial building
with a 311/2 year life and no salvage value. The building cost $1,000,000.
Use the straightline 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
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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.
 Summer '09
 PETRY

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