Double-declining-balance depreciation method

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Double-declining-balance depreciation method (DDB)

An accounting methodology in which the depreciation rate used is double the rate used under the straight-line method. In addition, the rate is applied to the full purchase cost of the asset, whereas under the straight-line method the rate is applied to the cost net of salvage value.

Double-Declining-Balance Depreciation Method

A way of calculating the depreciation of an asset that assumes the asset loses value at double the rate of the straight-line method. One calculates the DDB by depreciating double the straight-line value for the first year, and then depreciating the same percentage for each remaining year of the asset's usable life. DDB is a form of accelerated depreciation.
References in periodicals archive ?
Reclassified personal property can be amortized and depreciated over shorter time periods (usually five or seven years) using the double-declining-balance method.
A computer used more than 50% of the time for a qualified business use can be depreciated under the double-declining-balance method with a five-year life.
The usual first-year depreciation allowance for the property (for regular tax purposes) would be $140,000 (the first year of the double-declining-balance method for five-year property subject to a half-year convention).