Double-Declining Balance DDB Depreciation Method: Definition and Formula
For instance, if a machine costs $10,000, has a five-year useful life, and no salvage value, the double declining rate of 40% results in a $4,000 depreciation expense in the first year. In the second year, the same rate is applied to the reduced book value, yielding a $2,400 depreciation expense. This process continues annually,…