Business, Commerce, Differences, Tax

Difference Between Depreciation and Amortization?

Depreciation and Amortization

A gradual decrease in the value of an asset through wear and tear and obsolescence is called the depreciation. For example, Plant, machinery, building, furniture, computer hardware, road, railway line, bridge, airport, dams etc. A decrease in the value of an intangible asset is called amortization. Intangible asset means any patent, invention, design, copyright, trademark, computer software, motion picture film, or other like property or right, contractual right and any expenditure that provides a benefit of more than one year.       

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