Double Declining Balance Method (DOUBLE)

double(cost, salvage_value, useful_life, rate)

Compute the depreciation for an asset using the double declining balance method.
syse.double(cost: ndarray, salvage_value: ndarray, useful_life: int, rate: float) → ndarray

Compute the depreciation for an asset using the double declining balance method.

Parameters:

  • cost (np.ndarray) – The cost of the asset.

  • salvage_value (np.ndarray) – The salvage value of the asset.

  • useful_life (int) – The useful life of the asset.

  • rate (float) – The depreciation rate, expressed as a fraction of 1.

Returns:

The depreciation for the asset.

Return type:

np.ndarray

Note

The function takes the same inputs as the declining_balance_method function, but computes the depreciation using the double declining balance method. The double declining balance method assumes that the asset depreciates by a fixed percentage of its remaining book value each year, but that the rate of depreciation is twice the straight-line rate.

Examples:

Suppose a company purchases a printing press for $100,000, with an expected salvage value of $10,000 after 4 years. The company expects to use the printing press for 4 years. The depreciation rate for the printing press is 50% per year using the double declining balance method. We can compute the depreciation for the printing press using the double function

depreciation = syse.double(cost=100000, salvage_value=10000, useful_life=4, rate=0.5)
print(f"The total depreciation for the printing press over 4 years is ${depreciation:.2f}.")
Output = The total depreciation for the printing press over 4 years is $90,000.00.

This means that the company can deduct $90,000 as a depreciation expense over the 4-year life of the printing press for tax purposes. At the end of 4 years, the book value of the printing press will be $10,000, which is the expected salvage value.