Home Tips. 1  Home Warranty 101 Learn about the difference between home insurance and home warranty, and why you may need both types of coverage. 2  Home Maintenance Top Tips Simple ideas to help you maintain your systems and appliances and keep them running smoothly.
Amortization is recorded in the financial statements of an entity as a reduction in the carrying value of the intangible asset in the balance sheet and as an expense in the income statement.
Companies must use the straight-line method to amortize patents and other intangible assets, in which the amortization expense is the same each year. For example, if a company acquires a 15-year patent for $1 million, the annual straight-line amortization expense is about $67,000.