Use Ddb to compute the depreciation allowance on an asset for a specified period of time, using the double-declining balance method. Store the following information in the memory registers:
Register 0: Amount paid for asset
Register 1: Salvage value of asset at end of life
Register 2: Useful life of an asset
Register 3: Time period for depreciation allowance
You have purchased an office machine for $8,000. The useful life of this machine is six years. The salvage value after six years is $900. You want to compute the depreciate expense for the fourth year, using the double-declining balance method.
Memory register usage:
Register 0: 8000 (amount paid for asset) Register 1: 900 (value of asset at end of its life) Register 2: 6 (useful life of the asset) Register 3: 4 (time period for depreciation allowance)
Clicking SELECT on Ddb returns 790.12, which tells you that the depreciation expense for the fourth year will be $790.12.