Viewing Tweets won't unblock @SarahBarthel. 1  Sarah BarthelâVerified account @SarahBarthel 17 Oct 2016. 2  Sarah BarthelâVerified account @SarahBarthel 7 Oct 2016. 3  Sarah Barthel Retweeted.  Sarah Barthel 1  Retweeted. Sarah BarthelâVerified account @SarahBarthel 1 Aug 2016.  Sarah BarthelâVerified account @SarahBarthel 29 Jul 2016.
Amortization of Intangible Assets. To illustrate the amortization of an intangible asset, imagine XYZ Biotech spends $30 million dollars on a patent with a useful life of 15 years. Theoretically, to account for the expense over a 15-year period, XYZ Biotech records $2 million each year as an amortization expense.
If you were to buy a plot of land and build a store on it, the construction costs could be depreciated; the cost of the land could not. Amortization Amortization works the same way as depreciation. The difference is that amortization is used for intangible assets rather than physical property. A common example is a patent. Say you own a fabricating shop, and someone brings you an innovative tool that he has designed and patented. If you purchased the patent from him for, say, $20,000, you would amortize that cost over the life of the patent. Patents are typically good for 17 years; if there were 13 years left on this one, you'd amortize the $20,000 over those 13 years.