7 Residual value is not incorporated in the initial calculations for double-declining balance depreciation?

In the double-declining balance (DDB) method of depreciation, the focus is on accelerating depreciation in the early years of an asset's life, which is why residual value is not considered in the initial calculations. Instead, DDB applies a fixed percentage to the asset's book value at the beginning of each period, leading to higher depreciation expenses upfront. The residual value is only considered later to ensure that the asset's book value does not drop below its estimated salvage value at the end of its useful life. This approach allows for more tax benefits in the earlier stages of the asset's usage.