Operation Manual

Section 13: Investment Analysis 141
Full- and Partial-Year Depreciation with
Crossover
When calculating declining-balance depreciation it is often advantageous for tax
purposes to switch from declining balance to straight-line depreciation at some
point. This HP 12C Platinum program calculates the optimum crossover point
and automatically switches to straight-line depreciation at the appropriate time.
The crossover point is the end of the year in which the declining-balance
depreciation last exceeds or equals the amount of straight-line depreciation. The
straight-line depreciation is determined by dividing the remaining depreciable
value by the remaining useful life.
Given the desired year and the number of months in the first year, this program
calculates the depreciation for the desired year, the remaining depreciable value,
and the total depreciation through the current year.
Keystrokes (RPN mode) Display
fCLEARG
12000$
12,000.00
Book value.
500M
500.00
Salvage value.
25n
25.00
Life.
4\
4.00
Year desired.
11t
~
4.00
781.41
8,238.71
Fourth year:
depreciation,
remaining depreciable value.
t
~
5.00
746.02
7,492.69
Fifth year:
depreciation,
remaining depreciable value.
KEYSTROKES
(RPN mode)
DISPLAY
KEYSTROKES
(RPN mode)
DISPLAY
fs :4
048, 45 4
f] z
049, 10
fCLEAR
Î
000,
go
050, 43 34
1
001, 1
gi053
051, 43,33,053
2
002, 2
gi065
052, 43,33,065
z
003, 10
d
053, 33