While estimated residual value is not used to calculate annual depreciation expense under the double declining-balance method,it is used in calculating the asset's book value at the end of its estimated useful life.

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While estimated residual value is not used to calculate annual depreciation expense under the double declining-balance method, it is subtracted from the asset's beginning book value to determine the depreciable base, which is then multiplied by the double declining-balance rate to arrive at depreciation expense. Additionally, estimated residual value is used to calculate the asset's book value at the end of its estimated useful life by subtracting it from the asset's cost.

While Estimated Residual Value Is Not Used to Calculate Annual