ENGINEERING ECONOMICS: DEPRECIATION WITH

CALCULATOR TRICKS
N. Tabanao
Email:heartfiglia143@gmail.com
May 2018

Calculators Used:
Casio Fx-115 ES PLUS
Casio Fx-570 ES PLUS
Casio Fx-991 ES PLUS

Depreciation
Depreciation is the decrease in the value of an asset due passage of
time.

Elements:
 FC = 1st cost
 SV = salvage value
 d = depreciation charge
 n = economic life of the property
 m = any time before n
 BVm = book value after m years
 Dm = total depreciation for m years

Methods of Computing Depreciation Calculator Trick

Straight Line Method Y  A  BX MODE 3 2
FC  SV FC  SV
d  n 1 ; D m  d ( F / A, i, m)
Sinking Fund Method ( F / A, i, n)
 ((1  i) )
0
x

Declining Balance Method Y  A  B ^ x MODE 3 6

Double Declining Balance Method Y  A  B ^ x MODE 3 6
Sum-of-Year’s Digits Method Y  _  cX 2 MODE 3 3

Problem presented is made up.

 Straight Line Method

An engineer’s transit has a first cost of PhP 500,000 life of 4 years and
a salvage value of PhP 130,000. What is the book value of the
equipment after 2 years using straight line method?

MODE 3 2 Y  A  BX
X Y
0 500,000
4 130,000
AC
 
2 y = PhP 315,000

 Sinking Fund Method

Same problem. Book value after 2 years using sinking fund method?
Assume interest at 5% compounded annually.

n  4 yrs ; m  2 yrs
FC  SV FC  SV 500000  130000
d  n 1  41  A (Store to A)
( F / A, i, n)
0
 ((1  i) )  ((1  5%) )
x

0
x

2 1
Dm  d ( F / A, i, m)  A ((1  5%) x )  ( B Store to B)
0

Book value after 2 years = 500,000-B = PhP 324,019

 Declining Balance Method

Same problem. Book value after 2 years using declining balance
method?

MODE 3 6 Y  A  B ^ x

X Y
0 500,000
4 130,000
AC

2 y = PhP 254,951

 Double Declining Balance Method

Same problem. Book value after 2 years using double declining
balance method?

MODE 3 6 Y  A  B ^ x

X Y
0 500,000
4 2
500000(1  ) 4
4

AC

2 y = PhP 125,000
 Sum-of-Year’s Digits Method
Same problem. Book value after 2 years using Sum-of-Year’s Digits
Method?

MODE 3 3 Y  _  cX 2

X Y
0 500,000
4 130,000
5 130,000
AC

2 y = PhP 241,000

Comparison of the answers.

Straight Line Method PhP 315,000

Sinking Fund Method PhP 324,019
Declining Balance Method PhP 254,951
Double Declining Balance Method PhP 125,000
Sum-of-Year’s Digits Method PhP 241,000

I will appreciate any suggestion and will welcome any errors

pointed out.