Double-Declining-Balance
Barron's Business Dictionary:
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Double-Declining-Balance
Method of depreciation for tax purposes whereby twice the straight-line rate is applied to the remaining depreciable balance of an asset. For example, the table below is a depreciation schedule for a property with a depreciable basis of $10,000 and a depreciable life of five years, using the double-declining- balance method.
Year Remaining Balance Rate* Annual Deduction 1 $10,000 0.40 $4,000 2 6,000 0.40 2,400 3 3,600 0.40 1,440 4 2,160 0.40 864 5 1,296 0.40 518
* 0.40 is twice the straight-line rate of 20% per year for a five-year-life asset.
See also DECLINING - BALANCE DEPRECIATION .
Year Remaining Balance Rate* Annual Deduction 1 $10,000 0.40 $4,000 2 6,000 0.40 2,400 3 3,600 0.40 1,440 4 2,160 0.40 864 5 1,296 0.40 518
* 0.40 is twice the straight-line rate of 20% per year for a five-year-life asset.
See also DECLINING - BALANCE DEPRECIATION .
| Double-Click, Double Time, Double Taxation | |
| Double-Digit Inflation, Double-Dipping, Double-Entry Accounting, Double-Entry Bookkeeping |
Barron's Real Estate Dictionary:
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Double-Declining-Balance
A method of depreciation for tax purposes whereby twice the straight - line rate is applied to the remaining depreciable balance of an asset.
See declining balance depreciation.
Example: Table 18 is a depreciation schedule for a property with depreciable basis of $10,000 and depreciable life of 5 years, using the double declining balance method.
See declining balance depreciation.
Example: Table 18 is a depreciation schedule for a property with depreciable basis of $10,000 and depreciable life of 5 years, using the double declining balance method.
| Dormer, Donor | |
| Double Taxation, Double-Wide |
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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