SYD Depreciation material, actually, units, never, across

busprof

Anyone come across this in the material? I did straight line, DDB, and units of production but never actually computed SYD. Worth knowing?

Penny-wenny

I think this was in the CFA texts last year, but I can't seem to find it this year.

BTW Matt, excellent job answering questions over the past few days. I wish you all the very best for the exam.

dcfox83

SYD is an accelerated depreciation method. The TI-BAII has a depreciation feature - 2nd DEPR - scroll through the different methods until you hit Sum of Years Digit (SYD) to scroll hit the 2nd Enter key. Once you reach SYD hit the down button and enter info: LIF = life of asset - M01 = month asset placed into service - CST = cost of asset - SAL = salvage value of asset - YR = this is the year the rest of the information is calculating for - hitting the down key again should bring up DEP - this is the depreciation expense for Yr X (whatever you set YR to in the previous step) - RBV = remaining book value - RDV = remaining depreciable value - hitting down again will bring you to YR - change this to YR 2 and you'll get the second years depreciation details.

Example - $11,000 asset with 4 yrs useful life and $1,000 salvage value: 1st yr depre = $4,000 RBV = $7,000 RDV = 6,000 --- 2nd yr depre = 3,000 RBV = 4,0000 RDV = 3,000

Hope this helps

spartanag07

use calc



Edited 1 time(s). Last edit at Friday, June 4, 2010 at 04:52PM by dunbelievable.