This is an "accelerated" method. It results in higher depreciation expenses in the early years and lower expenses later.
The total amount paid to acquire the asset, including shipping, installation, and setup fees. depreciation calculation
Do you have a in mind that we should run the numbers for to see which method fits best? This is an "accelerated" method
In year one, you would deduct $16,000 (40% of $40,000). The deduction gets smaller each subsequent year. Choosing the Right Method you would deduct $16
Assets that are most productive in their early years but still have a long lifespan. Example: Straight-Line vs. Double-Declining
[(Cost - Salvage Value) / Estimated Total Units] * Actual Units Produced during Period