Depreciation – Casio ALGEBRA FX2.0 Financial User Manual
Page 20
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9. Depreciation
Any of the following four methods can be used to calculated depreciation.
u
uu
u
u
Straight-Line Method
The straight-line method calculates depreciation for a given period.
{Y
–1
}
(
PV
–
FV
)
SL
1
=
n
12
u
(
PV
–
FV
)
SL
j
=
n
12–
{Y
–1
}
(
{Y
–1
}G
12)
(
PV
–
FV
)
n
12
u
SL
n
+1
=
Depreciation for an item acquired part way through a year can be calculated by month.
u
uu
u
u
Fixed Percentage Method
Fixed percentage method can be used to calculate depreciation for a given period, or to calcu-
late the depreciation rate.
100
I%
FP
j
= (
RDV
j
–1
+ FV
)
×
100
{Y
–1
}
I%
FP
1
=
PV
Ч
12
Ч
FP
n
+1
=
RDV
n
(
{Y
–1
}G
12)
RDV
1
=
PV
–
FV
–
FP
1
RDV
j
=
RDV
j
–1
–
FP
j
RDV
n
+1
= 0 (
{Y
–1
}G
12)
Depreciation for an item acquired part way through a year can be calculated by month.
SL
j
: depreciation charge for the jth
year
n
:
useful life in years
PV
: original cost (basis)
FV
: scrap value (salvage value)
j
: year
Y–
1
: number of depreciable months
in first year
FP
j
: depreciation charge for the jth year
RDV
j
: remaining depreciable value at the
end of jth year
I
%
: depreciation rate