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What does it mean to amortize an intangible asset?

Amortization of intangible assets is the same thing as depreciating physical (tangible) assets. If the company has finite life, then the company would amortize the intangible asset over the estimated useful life.

For example, if the company acquires a trademark that has a useful life of 10 years, then after 10 years, the net book value of the trademark would be $0.


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