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If the interest rate is below the equilibrium rate, the:
Double-declining-balance Method
An accelerated depreciation method that doubles the straight-line depreciation rate and applies it to the undepreciated balance at the start of each period.
Straight-line Method
A method of calculating depreciation for an asset that spreads the cost evenly over its useful life.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset over its useful life, reducing its book value.
Salvage Value
The estimated residual value of an asset at the end of its useful life, reflecting what it could be sold for or scrapped for parts.
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