The declining-balance method applies a depreciation rate to the book value of the asset at the beginning of each accounting period.

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The declining-balance method is a type of accelerated depreciation method, which applies a constant depreciation rate (typically double the straight-line rate) to the book value of the asset at the beginning of each accounting period. This results in higher depreciation expenses in the earlier years of an asset's life and lower expenses in later years.

The Declining-Balance Method Applies a Depreciation Rate to the Book