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7 How do you calculate the decline in value of a depreciating asset under Div 7 how do you calculate the decline in value of a. School University of Technology Sydney; Course Title LAW ; Type. Notes. Uploaded By travisbacon. Pages 75 Ratings 92% (12) 11 out of 12 people found this document helpful;.

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Declining Balance Method = (Net Book Value – Residual Value) * Rate of Depreciation (in %) Declining Balance Method Example Let’s understand the same with the help of examples: Example #1 Ram purchased a Machinery costing $ with a useful life of 10 years and a residual value of $ The rate of Depreciation is 20%.