The double-declining balance method is applied by (1)calculating the asset's straight-line depreciation rate,(2)doubling it,(3)subtracting residual value from cost,and (4)multiplying the rate times the cost.

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The double-declining balance method is applied by (1)calculating the asset's straight-line depreciation rate, (2)doubling it, (3)multiplying the rate times the cost, and (4)repeating this process until the remaining book value is equal to the asset's residual value. The formula is [(2/Asset's useful life) x Book Value]. The residual value is not subtracted from the cost in this method.

The Double-Declining Balance Method Is Applied by (1)calculating the Asset's