how to calculate declining balance depreciation
depreciation under the declining balance method is calculated with this formula 1declining balance depreciation c b v d r where c b v current book value d r depreciation rate begin aligned text declining balance depreciation cbv times dr textbf where cbv text current book value dr text depreciation rate end aligned declining balance depreciation cbv drwhere cbv current book valuedr depreciation rate current book value is the asset s net value at the start of an accounting period it s calculated by deducting the accumulated depreciation from the cost of the fixed asset residual value is the estimated salvage value at the end of the useful life of the asset the rate of depreciation is defined according to the estimated pattern of an asset s use over its useful life the expense would be 270 in the first year 189 in the second year and 132 in the third year if an asset costing 1 000 with a salvage value of 100 and a 10 year life depreciates at 30 each year 