Can you depreciate below the residual value using the declining-balance method?

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1244665

2026-03-02 21:15

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No, you cannot depreciate an asset below its residual value using the declining-balance method. This method calculates depreciation based on a fixed percentage of the asset's book value each year, but it should stop once the book value reaches the residual value. Continuing to depreciate below this threshold would not accurately reflect the asset's true value.

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