Using the double-declining balance method of amortization means that the book value should not be reduced below the residual value.

Question

Quizplus · Accepted Answer

The double-declining balance method of depreciation accelerates the depreciation expense, but it does not depreciate an asset below its residual (or salvage) value. The calculation stops when the book value reaches the estimated residual value.

Using the Double-Declining Balance Method of Amortization Means That the Book