PROJECT ( Straight - Line Depreciation ) ( 100 points )

Objective To write a program that computes a straight - line depreciation.

PROJECT DESCRIPTION

Natoma Telecommunications has purchased a business - use computer system costing

$ 6,500 . The pertinent information concerning this asset is listed in Figure 1 below.

Natomas accounting manager wants you to write a computer program, which will calculate the annual straight - line depreciation of this asset and generate a depreciation schedule showing the year - to - year deprecation over the expected life of the asset.

Figure 1 Business Asset Information

asset type		Computer System
asset cost		$ 6,500.00
asset life		5 years
salvage value		$ 500.00

Information About This Project

In accounting, the formula for straight - line depreciation is:

V ( t ) = C ? C R t

where V ( t ) is the value of the asset at time t , C is the asset cost and R is the rate defined:

R =	asset cost ? salvage value
	asset cost asset life

Once the asset cost, life and salvage value are known, a complete depreciation schedule can be prepared, the template of which is illustrated below. The depreciation schedule shows the year, annual depreciation, accumulated amount and book or current value.

Since we are dealing with straight - line depreciation, the annual depreciation is the same for years 1 through 5 . The current accumulated depreciation is obtained by adding the current year annual depreciation to the prior accumulated depreciation. The current book value is obtained by subtracting the prior book value by the annual depreciation.

Figure 2 Asset Depreciation Schedule

Year		Annual Depreciation		Accumulated Amount		Book Value
0		--		--		$ 6,500.00
1		$ 1,200.00		$ 1,200.00		$ 5,300.00
2		$ 1,200.00		$ 2,400.00		$ 4,100.00
3		$ 1,200.00		$ 3,600.00		$ 2,900.00
4		$ 1,200.00		$ 4,800.00		$ 1,700.00
5		$ 1,200.00		$ 6,000.00		$ 0,500.00

PROJECT ( Straight - Line Depreciation )

Steps To Complete This Project

STEP 1 Open MS Visual C + + and Write the Program Code

Open Visual C + + on your computer. First type the code given in Figure 3 .

The code consists of the preprocessing directive and the class definition.

Save the file as: Linear.cpp

Figure 3 Completed Program Code for the Depreciation Program

#include

using namespace std; //preprocessing directive(s)

class Depreciate //class definition

{

private: //data members

char asset[20];

double cost, rate, salvage, time, value;

int life;

public:

Depreciate() { //class constructor

cost = 0;

rate = 0;

value = 0;

salvage = 0;

time = 0;

life = 0;

}

void getInfo() { //member functions

cout << "enter the asset type ";

cin.getline(asset,20);

cout << "enter the asset cost ";

cin >> cost;

cout << "enter the salvage value ";

cin >> salvage;

cout << "enter the asset life ";

cin >> life;

cout << "enter the time (in years) ";

cin >> time;

}

void Compute() {

rate = (cost - salvage) /(cost * life);

value = cost - cost * rate * time;

}

void Display() {

cout << "the asset value after year " << time << " is ";

cout << value << endl;

}

};

PROJECT ( Straight - Line Depreciation )

STEP 2 Write the Program Code

After you type the code for the class definition, code the main() function directly below the class definition.

Figure 4 main() Function for the Depreciation Program

int main()

{

//Depreciation Application: Sammy Student Programmer

//instantiate a class object

Depreciate x;

//object calls member functions

x.getInfo();

x.Compute();

x.Display();

return 0;

}

STEP 3 Compile and Run your Program

Build, compile and run your program. Test the operation of your program using appropriate numbers for your input variables. Use the information provided within Figure 1 .

STEP 4 Modify Your Program Code

With your program running properly, modify the main() function and the class definition such that your program will display the entire depreciation schedule shown previously in Figure 2 .

STEP 5 Submit Your Program Code and Your Run Time Output

When completed, submit your program source code as well as the program output(s).