In Example 4, the salvage value is $25,000. From a practical standpoint, salvage value is often considered to be $0, because its valuation is often small and immaterial. For instance, after 5 years, a certain computer is considered obsolete. So, the computer has a salvage value of $0.

Spreadsheet for Example 4.

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Using the spreadsheet from Example 4, you can see that the value expensed during the first 4 years using double declining-balance depreciation was

For straight-line depreciation, the annual depreciation would be

After 4 years, the total depreciation expense is The spreadsheet below confirms that the total depreciation during the first 4 years is

So, using double declining-balance depreciation, we expensed more during the first 4 years than we would have with straight-line depreciation.

You can check your work using a depreciation schedule calculator located in Tools.