Double-Declining Balance
Formula
(2 / Useful Life) × Book Value at Beginning of Year
Interactive Calculator
| Component | Value |
|---|---|
| Useful Life(years) | |
| Beginning Book Value | |
| DDB Depreciation Expense | — |
Depreciation Schedule Calculator
DDB Rate40.00%(2 / 5)
Total Depreciable Cost$90,000.00($100,000.00 − $10,000.00)
Straight-Line Rate20.00%(1 / 5) — DDB is 2× this
| Year | Beginning Book Value | DDB Depreciation | Accum. Depreciation | Ending Book Value |
|---|---|---|---|---|
| 1 | $100,000.00 | $40,000.00 | $40,000.00 | $60,000.00 |
| 2 | $60,000.00 | $24,000.00 | $64,000.00 | $36,000.00 |
| 3 | $36,000.00 | $14,400.00 | $78,400.00 | $21,600.00 |
| 4 | $21,600.00 | $8,640.00 | $87,040.00 | $12,960.00 |
| 5 | $12,960.00 | $2,960.00 | $90,000.00 | $10,000.00 |
CategoryDepreciation
ComponentsDDB Depreciation Expense; Useful Life (years); Beginning Book Value
Example(2/10) × 100K = $20K year 1
Related Subjects
External Links
- Declining-balance method — Wikipedia
- IRS Publication 946 — How To Depreciate Property — IRS