With assets that decline in value quickly, many businesses may choose to depreciate their assets using the double declining balance method. If the company buys a new vehicle for the business for $10,000 that has a 10-year life and no salvage value at the end, the first year's depreciation is $2,000 or double the amount that would be depreciated using a straight-line method. In year 2, the double declining method means that the amount depreciated is $1600 as 20% of the remaining balance is depreciated.