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Example of amortization

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Reference no: EM132265803

Which of the following would be an example of amortization?

a) The cost of a patent on an "app" spread out over the useful life of the "app".

b) The cost of a new phone system spread out over the useful life of the phone system.

c) both a) and b) are examples.

d) neither a) nor b) are examples.

The answer is A but I wonder why, what's the difference between A and B

Reference no: EM132265803

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