User Manual

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9. Depreciation
Depreciation lets you calculate the amount that a business expense can be offset by income
(depreciated) over a given year.
• This calculator supports the following four types of depreciation calculations.
straight-line (
SL ), fixed-percentage ( FP ), sum-of-the-years’-digits ( SYD ), or declining-balance
(
DB ).
• Any one of the above methods can be used to calculate depreciation for a specified period.
A table and graph of the depreciated amount and undepreciated amount in year
j .
u Straight-Line Method (SL)
SL j : depreciation charge for the j th year
n : useful life
P V : original cost (basis)
F V : residual book value
j : year for calculation of depreciation
cost
Y −1 : number of months in the first year
of depreciation
u Fixed-Percentage Method (FP)
FP
j : depreciation charge for the j th year
RDV j : remaining depreciable value at the
end of j th year
I % : depreciation ratio
u Sum-of-the-Years’-Digits Method (SYD)
SYD j : depreciation charge for the j th year
RDV j : remaining depreciable value at the
end of j th year
{Y–1}(PV–FV )
SL
1 =
n 12
u
(PV–FV )
SL
j =
n
12–{Y–1}
({Y–1}≠12)
(PV–FV )
n 12
u
SLn+1 =
100
I%
FP
j = (RDVj–1 + FV ) ×
100
{Y–1}
I%
FP
1 = PV ×
12
×
FP
n+1 = RDVn ({Y–1}≠12)
RDV1 = PV – FV – FP1
RDVj = RDVj–1 – FPj
RDVn+1 = 0 ({Y–1}≠12)
n (n
+1)
Z =
2
2
(n' integer part +1)(n' integer part + 2*n' fraction part
)
Z' =
SYD1 =
{Y–1}
12
n
Z
× (PV
– FV )
n'– j+2
Z'
)(PV
– FV – SYD1)( j≠1)SYDj = (
RDV1 = PV – FV – SYD1
RDVj = RDVj –1 – SYDj
n'– (n +1)+2
Z'
)(PV
– FV – SYD1)({Y–1}≠12)
12–{Y–1}
12
×SYD
n+1 = (
12
{Y–1}
n' = n –