118 9: Depreciation
]
2AO8%K*((&((" Remaining depreciable
value after third year
using SL.
The ACRS Method
To calculate the amount of tax deduction under the U.S. Accelerated
Cost Recovery System:
1. Display the DEPRC menu: press
"
…
.
2. Enter the cost basis of the asset and press †
3. The Internal Revenue Service publishes tables that list the percentage
of an asset’s basis that can be deducted each year of its prescribed
life. Look up that value, enter it, and press
‰
.
4. Press Š
to calculate the value of the deduction.
Example: ACRS Deductions. Use the ACRS method to find the in-
come-tax deduction for a $25,000 asset over 3 years of a 5-year life.
Use this hypothetical ACRS table:
Year Percentage Deductible
1
2
3
4
5
15
25
20
20
20
Keys: Display: Description:
"
…
" DEPRC menu.
25000
†
J1F;F8$.K(((&((" Enters basis.
15
‰
172F68#.&((" Tabular value, year 1.
Š
172F8%K-.(&((" Deduction in first year.
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