Use of the double-declining balance method

Question

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The double-declining balance method results in a decreasing charge to depreciation expense because it applies a fixed rate to a decreasing book value. Residual value is not deducted in computing the depreciation base because the rate is applied to the full cost of the asset. The book value should not be reduced below residual value because the method does not provide for any salvage value at the end of the asset's useful life.

Use of the Double-Declining Balance Method