Residual value is deducted in calculating depreciation expense in the declining-balance method.

Name: Residual value is deducted in calculating depreciation expense in the declining-balance method.
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In the declining-balance method of calculating depreciation, the residual (or salvage) value is not deducted from the asset's cost when calculating the annual depreciation expense; instead, depreciation is calculated based on a constant rate applied to the asset's remaining book value each year.

Residual Value Is Deducted in Calculating Depreciation Expense in the Declining-Balance