Question

Amortization is a cost recovery method used for: a. tangible personal property b. section 197 intangible...

Amortization is a cost recovery method used for:

a. tangible personal property
b. section 197 intangible property
c. all business use property
d. real property
e. natural resources
Business   Accounting   
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Answer #1

Amortization is a cost recovery method used for:

b. section 197 intangible property.

Reasons

  • Recovery or written off the cost of intangible asset through out its life is known as Amortization.
  • Intangible assets are non-physical assets that can be assigned an economic value such as patents or goodwill.
  • Recovery or written off the cost of tangible asset through out its life is known as Depreciation.
  • Recovery or written off the cost of natural resources through out its life is known as Depletion.
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