Depreciation Of Intangible Fixed Assets

Intangible assets are fixed assets that bring no physical properties. All expenses incurred to laid out the property until the property tin hold upward used inward the operations of the equity, the costs are included inward the toll of the fixed assets.

The procedure of depreciation of fixed assets is called amortization. The useful life of intangible assets, inward accordance amongst the stipulated rules or regulations. If an intangible fixed property is issued past times the authorities together with then the menstruation of validity of the property shall hold upward determined past times the authorities inward accordance amongst authorities regulations. For illustration patent validity menstruation inside fifteen years.

The amortization calculation is ordinarily done on a straight-line basis. In this instance the residue value afterwards the useful life of the property is exhausted is nix (S = 0), so, The depreciation expense formula annually is:

Formula of Depreciation of Intangible Fixed Assets

Information :
A = the toll of intangible fixed assets
n = validity menstruation of intangible fixed assets

Example Question of Depreciation of Intangible Fixed Assets

The coal mining companionship has been granted a 15-year coal mining license amongst a $ 150,000,000 licensing fee. Please specify the annual depreciation accuse of the patent!

Answer:
A = $150,000,000
n = 15years

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Referensi :

To'Ali's mass math grouping accounting together with sales