The declining-balance method does not deduct the salvage value in computing the depreciation base.

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The declining-balance method is a depreciation method that calculates the depreciation expense as a fixed percentage of the opening balance of the asset each period. The method does not deduct the salvage value in computing the depreciation base, which means that the asset's value will never be depreciated below the salvage value.

The Declining-Balance Method Does Not Deduct the Salvage Value in Computing