Depreciation versus amortization.
What do they have in common?
They are both accounting processes that allocate the cost of certain assets to current expense in a systematic and rational manner in those periods expected to benefit from the use of the asset.
Where are depreciation and amortization unique?
Tangible assets like buildings, machines, and trucks get depreciated.
Intangible assets like patents, licenses, software, and capitalized research and development, get amortized.
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