This method starts off with a low value and then increases it by a fixed percentage each year.

The purpose of this method is to reduce the book value of an asset rapidly in early years and at a lower rate in the later years of its life.

The asset's value is decreased by reducing its book value by a constant percentage each year.

Under this method, an asset's value is refuced in uniform annual amounts over its estimated useful life.

The purpose of this method is to depreciate a capital investment in proportion to its use.

This method is similar to the declining$-$balance method only a percentage twice the straight line rate for the life span of item is used.