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Depreciation Worksheet 61
Example: Computing Straight-Line Depreciation
In mid-March, a company begins depreciation of a commercial building
with a 31½ 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.
Answer: For the first year, the depreciation amount is $25,132.28, the
remaining book value is $974,867.72, and the remaining depreciable
value is $974,867.72.
For the second year, the depreciation amount is $31,746.03, the
remaining book value is $943,121.69, and the remaining depreciable
value is $943,121.69.
To Press Display
Access Depreciation
worksheet.
& p
SL
Enter life in years. # 31.5 !
LIF =
31.50
Enter starting month. #
3.5 !
M01 =
3.50
Enter cost. #
1000000 !
CST =
1,000,000.00
Leave salvage value as is. #
SAL = 0.00
Leave year as is. #
YR = 1.00
Display depreciation
amount, remaining book
value, and remaining
depreciable value.
#
#
#
DEP =
RBV =
RDV =
25,132.28*
974,867.72*
974,867.72*
View second year. #
%
YR =
YR =
1.00
2.00
Display second year
depreciation data.
#
#
#
DEP =
RBV =
RDV =
31,746.03
*
943,121.69*
943,121.69*