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It recorded the asset in its accounts at its cost. Alan will make this. Methods For Preparing The Statement Of Cash Flows Cash Flow Cash Flow Statement Learn Accounting Depreciation and amortization are ways to calculate asset value over a period of time. . Say the company owns the exclusive rights over a patent for 10. One patent was just issued this year that cost the company 10000. Practically companies can use accounting software to calculate these amounts. The lease asset is amortized by the straight-line method over the. To record the amortization expense ABC Co. Web Take a look at the following. Amortizing a loan You have a 5000 loan outstanding. Amortization refers to the reduction in the cost of the intangible assets over its lifespan. So to calculate the amortization of this intangible asset the company records the initial cost for creating the software. Depreciation is the amount

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