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
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.