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How Does the Double Declining Balance Method Work for Depreciation?

The double declining balance method calculates depreciation by applying a constant rate to an asset’s declining book value. First, the straight-line depreciation rate is determined by dividing 100% by the asset’s useful life. For example, an asset with a five-year useful life has a straight-line rate of 20%. This rate is then doubled to produce […]

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How Does the Double Declining Balance Method Work for Depreciation?

The double declining balance method calculates depreciation by applying a constant rate to an asset’s declining book value. First, the straight-line depreciation rate is determined by dividing 100% by the asset’s useful life. For example, an asset with a five-year useful life has a straight-line rate of 20%. This rate is then doubled to produce […]

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