Double declining balance

An accelerated depreciation method that applies twice the straight-line rate to the asset's remaining book value each year. An asset with a five-year life is depreciated at 40% of its remaining value annually.

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Related terms

Tax and depreciation

• Accelerated depreciation
• Diminishing value
• Sum-of-the-years' digits
• Tax deferral
• Tax timing strategies
• Temporary full expensing / instant asset write-off
• Units of production