shootingstar

djmm187 Wrote:
-------------------------------------------------------
> Damil4real Wrote:
> --------------------------------------------------
> -----
> > Use your calculator to calculate SL/DB
> > Depreciation, Amortization, Amortized discount,
> > interest payments...etc.
> >
> > Well, saves me time!
>
>
> how do you do that using the TI ?


Gabriel Health Enterprises purchased a new MRI machine for $4,250,000 at year-end. Due to changing healthcare technology, the MRI machine is expected to have a useful life of 4 years and an estimated salvage value of $300,000. Calculate the amount of depreciation expense that Gabriel Health Enterprises would record for year 3 assuming the company uses the double-declining balance method of depreciation.

a) 493,750
b) 531,250
c) 790,000
d) 987,500

Correct Answer is - B (531,250).

How to calculate it on the BA II Plus Calculator


[2nd] DEPR (key 4)

[2nd] SET until you see DB, screen will automatically show "DB = 200.0000". <<leave as

Scroll Down and you will be prompted for lifetime (life of machine) (LIF =)

Key in 4 [ENTER]

Scroll down again and you will see MO = 1 <<< leave as

Scroll down again and you will be prompted to enter cost (CST=)

Key in $4,250,000 [ENTER]

Scroll down again and you will be prompted to enter salvage value (SAL=)

Key in $300,000 [ENTER]

Scroll down again and you will be prompted for year (YR=)

Key in year you want to calculate depreciation amount for (for this question, it's year 3)

Key in 3 [ENTER]

All the relevant variables have now been entered. Scroll down and you will be shown in succession the values for Year 3 depreciation of $531,250 (represented by DEP),....

scroll down again and you will be shown the remaining book value of $531,250 (represented by RBV), ....

scroll down again and you will be shown remaining depreciable value of $231,250 (represented by RDV).

Scroll back to YR (changing the year will give different DEP amounts...etc)

Hope that helps.