The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark.
Multiply the after-tax interest rate of your debt by the principal amount of your debt. The result will be the true annual dollar cost of your debt. For example, if your loan is for $100,000, your interest rate is 5 percent and your after-tax interest rate is 4 percent, $100,000 times 4 percent equals $4,000.
Total the costs to be amortized, then check the closing statement for any credits or reimbursements that reduce these costs. Deduct credits and reimbursements from the total. Add any additional costs not included in the closing statement, such as legal and accounting fees, registration fees or regulatory fees. The result is the amount to which amortization applies. Read the loan document to determine the life of the loan and the amortization periods. For example, if a loan is payable over a period of 120 months and loan costs are $50,000, divide the amortized costs by 120. In this case, the allowable amortization expense is $416.67 each month. Set up an amortized loan costs account and a contra account for accumulated amortization on the fixed asset section of the balance sheet. Set up an amortization expense account, and debit $416.67 each month as amortization expense.