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This question is about amortization vs depreciation.
How do I know whether to depreciate or amortize an asset?
The rule of thumb is that intangible assets are amortized, and tangible assets are depreciated. However, the Generally Accepted Accounting Principles (GAAP) will have guidance on how to categorize different assets. If you're unsure whether an asset should be amortized or depreciated, you should refer to the guidelines.
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