Finance

Declining Balance Depreciation

First-year double-declining depreciation.

Formula

Formula
D1 = cost · (2life)

Variables

SymbolDefinitionType & rangeUnitsRole
cost asset cost computed result result
life useful life (yr) computed result result

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Result

Worked examples

Example 1
Givencost = 10000, life (years) = 5
Result4000
Example 2
Givencost = 50000, life (years) = 10
Result10000