Depreciation Declining Balance Method (Matheson's Method) Example 2: A machine having a certain first cost has a life of 10 years and a salvage value of 6.633% of the first cost at the end of 10 years. If it has a book value of P58,914 at the end of the 6th year, how much is the first cost of the machine if the constant percentage of declining value is used in the computation for its depreciation. (Sometimes called Matheson's method) Depreciation Declining Balance Method (Matheson's Method) Example 3: A machine costing P720,000 is estimated to have a life of 10 yrs. If the annual rate of depreciation is 25%, determine the total depreciation using a constant percentage of the declining balance method