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double-declining-balance method of depreciation

double-declining-balance method of depreciation definition - finance
An accelerated depreciation method that assumes that the most useful life of an asset is its early years. Thus, it takes a larger than normal amount of depreciation expense in the first years of an assetÂ’s life. The double-declining-balance method is calculated by doubling the annual depreciation expense that would be calculated by the straight-line depreciation method, which spreads the depreciable cost of the asset evenly over the estimated useful life of the asset.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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