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How to Calculate Double Declining Balance.
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How to Calculate Double Declining Balance.

Rosemary Njeri

The double declining balance (DDB) method of depreciation, also known as the 200% declining balance method of depreciation, is a form of accelerated depreciation that involves multiplying an asset’s beginning book value by a depreciation rate.

This method is used with assets that lose value quickly as it tends to be larger at beginning of an asset’s life and smaller later on.

Formula to calculate DDB.

Calculate Double Declining Balance.

Example:

Suppose a project’s has 10 useful years, calculate the DDB.

Calculate Double Declining Balance.

Therefore, your double declining balance is 20%.

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