*Withdrawals from your qualified plan are taxed as ordinary income and may be subject to a 10% Federal tax penalty if taken prior to age 59 1/2. If you left your employer in or after the year in which you turned 55, you may not be subject to the 10% early withdrawal penalty.
Intangibles with a Determinable Life. Intangible assets with a determinable life are amortized over their useful lives. Amortization is a process of allocating the expense over a number of accounting periods to reflect the actual amount of the asset consumed each period.
Amortization Formula. To amortize assets using the straight-line depreciation method, subtract the asset's residual value from its total cost. Then divide the balance by the asset's useful life. The result is a fixed amortization expense that should be recorded to the general ledger each year.mortization Formula. To amortize assets using the straight-line depreciation method, subtract the asset's residual value from its total cost. Then divide the balance by the asset's useful life. The result is a fixed amortization expense that should be recorded to the general ledger each year.