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Section 13: Investment Analysis 191
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 191 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
Excess Depreciation
When accelerated depreciation is used, the difference between total depreciation
charged over a given period of time and the total amount that would have been
charged under straight-line depreciation is called excess depreciation. To obtain
excess depreciation:
RPN Mode:
1. Calculate the total depreciation then press \.
2. Key in the depreciable amount (cost less salvage) then press \. Key in
the useful life of the asset in years then press z. Key in the number of
years in the income projection period then press § to get the total
straight-line depreciation charge.
3. Press - to get the excess depreciation.
ALG Mode:
1. Calculate the total depreciation then press -gØ.
2. Key in the depreciable amount (cost less salvage) then press z. Key in
the useful life of the asset in years then press §. Key in the number of
years in the income projection period then press gÙ to get the total
straight-line depreciation charge.
3. Press ³ to get the excess depreciation.
Example:
What is the excess depreciation in the previous example over 7
calendar years
?
(Because of the partial first year, there are 6.5 years depreciation
in the first 7 calendar years.)
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
9429.56
\
9429.56
-gØ
9,429.56
Total depreciation throu
g
h
seventh year.
10500
\
10500
z
10,500.00
Depreciable amount.
8
z
8
§
1,312.50
Yearly straight-line
depreciation.
6.5
§
6.5
gÙ
8,531.25
Total straight-line
depreciation.
- ³
898.31
Excess depreciation