This is another type of accelerated depreciation method followed generally in U.S.A.
The depreciation expenses is computed by multiplying the asset cost less accumulated depreciation by twice the straight line rate expressed in percentage. No provision is made for salvage value of the asset.

The following steps outline the procedure:

(a)    Determine the useful life of the asset;

(b)    Divide the cost of the asset by its useful life (No provision is made for salvage or scrap value in computing the depreciable cost)

(c)    Determine the amount by straight line depreciation method.

(d)    Divide the annual amount of straight depreciation by the cost. This would give the rate of depreciation based on cost.

(e)    Multiply the straight line rate or percentage of depreciation by two.

(f)    Multiply the cost by rate or percentage as in (e).

(g)    Subtract the depreciation as calculated in (f) from cost to arrive at the book value at the end of the first year.

(h)    Multiply the book value at the end of the first year by the rate computed in (e).

(i)    Repeat steps (g) and (h) for the useful life of the asset.

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