Depreciation

Amortization

Answer:

Amortization is similar to the straight line method of depreciation in that an annual deduction is allowed to recover certain costs over a fixed period of time.
Examples of amortizable items are costs of starting a business, goodwill, customer lists, franchise fees, licenses, trademarks and certain other intangibles, reforestation and pollution control facilities. Amortization is reportable on IRS Form 4562.
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