Double-declining-balance amortization computes annual amortization by multiplying the asset's book value less residual value by two times the straight-line rate.

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Double-declining-balance depreciation, not amortization, computes annual depreciation by multiplying the asset's book value at the beginning of the year by two times the straight-line rate. Amortization typically refers to spreading out the cost of an intangible asset over its useful life, not using the double-declining balance method.

Double-Declining-Balance Amortization Computes Annual Amortization by Multiplying the Asset's Book