Amortization

Amortization applies to intangible assets. Intangible assets are a class of long-lived assets that are not physical in nature, these assets are special rights to current and expected future benefits from patent, copyrights, trademark, franchise, leaseholds, and   goodwill
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Amortization generally computed on a straight-line basis. Amortization expenses written off directly against the asset account rather than held in an accumulated amortization account. Therefore, the residual value of the most intangible asset is zero.

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