DBX calculations using TI BAII Plus Professional

[cfaL1_10]

Can you please tell me how to do DBX calculation? As per TI BAII Plus Professional manual you can do double declining depreciation with crossover to straight line depreciation using DBX option in DEPR button.
e.g A company purchases an equipment for $1000,000 its useful life is 5 years with first 2 years double declining balance and remaining life straight line depreciation if the salvage value is $0 calculate the depreciation, remaining book value and remaining depreciable value at the end of each year.
How will you do it using the calculator?
thanks in advance for your help.

 

[wannabeacfa]

@cfaL1_10
You correctly stated that the TI BA II Plus has the option to set depreciation method to DBX which would use accelerated depreciation (double declining if DBX = 200) and crossover to straight line.
However, the functionality programmed into the calculator does not allow for setting a user defined year to crossover from DD to SL. The calculator does the crossover when the SL depreciation would be higher than the DD depreciation.
In other words, you cannot do your stated problem with an elegant way using DBX functionality. Here is how I would do it.
2nd->DEPR
2nd->CLR WORK
2nd->SET till you see DB
200->ENTER (for double declining)
down arrow
LIF=5 ENTER
down arrow
down arrow
CST=1,000,000 ENTER
down arrow
SAL=0 ENTER
down arrow
YR=1 ENTER
down arrow
DEP 400,000 (Yr 1 depreciation)
down arrow
RBV 600,000 (Yr 1 remaining book value)
down arrow
RDV 600,000 (Yr 1 remaining depreciable value)
down arrow
YR=2 ENTER
down arrow
DEP 240,000 (Yr 2 depreciation)
down arrow
RBV 360,000 (Yr 2 remaining book value)
down arrow
RDV 360,000 (Yr 2 remaining depreciable value)
For Years 3, 4, 5, DEP = (360000 - 0)/3 = 120,000 switch to SL for a user defined year has to be done manually
RBV = RDV = 120,000 less each year (240,000 then 120,000 then 0)
Not the elegant answer you are looking for but the calculator doesn’t support what you wish for!