CPAnet Forum: Capitalization vs Amortization

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Topic: Capitalization vs Amortization (

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cpa_ca
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Joined: 19 Mar 2009
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Posted: 19 Mar 2009 at 13:03 \| IP Logged

Can anyone explain the differences? Thanks!

seyiBLQ
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Joined: 24 Jan 2009
Location: United States
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Posts: 90

Posted: 19 Mar 2009 at 13:06 \| IP Logged

Capitalize and then amortize. e.g. You capitalize $100,000 a equipment with a ten year life. Then amortize it over its life. $10,000 per year.

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