When using the diminishing-balance depreciation method, the asset's residual value is used in computing the first year of depreciation.

Name: When using the diminishing-balance depreciation method, the asset's residual value is used in computing the first year of depreciation.
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Quizplus · Accepted Answer

When using the diminishing-balance depreciation method, the asset's residual value is not used in computing the first year of depreciation. Instead, the initial cost of the asset is used.

When Using the Diminishing-Balance Depreciation Method, the Asset's Residual Value