5: Depreciation Worksheet
85
Declining Balance with Straight-Line Crossover Example
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 declining-balance 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.
Example: Declining-Balance Data
Procedure
Keystrokes
Display
Set all variables to defaults.
&
}
!
RST
0.00
Select Depreciation
worksheet.
&
p
SL
Select declining-balance
crossover method.
&
V
&
V
&
V
DBX =
200.00
Enter life in years.
#
7
!
LIF =
7.00
Enter starting month.
#
5.5
!
M01 =
5.50
Enter cost.
#
100000
!
CST =
100,000.00
Leave salvage value at 0.
#
SAL =
0.00
Leave year at 1.
#
YR =
1.00
Display depreciation amount,
remaining book value, and
remaining depreciable value.
#
#
#
DEP =
RBV =
RDV =
17,857.14
82,142.86
82,142.86
View second year.
#
%
YR =
YR =
1.00
2.00
Display second year
depreciation data.
#
#
#
DEP =
RBV =
RDV =
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.
