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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...
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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.

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