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What is the difference between Depriciation and amortization?
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Answer Posted / sunny
Depreciation is reduction in the value of FIXED ASSESTS
which occurs due to use or lease.Depreciation is charged
only if the assest is put to use.
Amortization is utilizing the funds used for starting up the
business for tax purpose. For tax entire amount spend in
starting in business is not allowed. It needs to be
amortized for a period of 180 months under section 709(b) of
IRS.
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