This formula is best for companies with assets that lose greater value in the early years and that want larger depreciation deductions sooner. Depreciation: current book value x depreciation rate ...

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

Most assets lose more value at the beginning of their useful life. The SYD, DB, DDB, and VDB functions apply this property. The DB function uses a fixed rate to calculate the depreciation values.