Natural Resources: Natural resources are those resources that are naturally available and are not manmade. They are the assets that are physically consumed when used. Examples are minerals, oil, and timber and gas fields. Depletion: The process which is used for cost allotment of natural resources to expense as they are used is called depletion. Intangible Assets: Intangible assets are those assets that are invisible by nature but are there such as goodwill , and patents. They give a particular company long term benefits and privileges. Goodwill: Goodwill is an intangible asset and is the amount that comes when a company is valued higher above the actual market price of that particular company. To Determine: The amount of amortization. Solution: Given, Goodwill of G Company is $3,847. Useful life is 10 years. Formula to calculate the amount of amortization, Amortization = Goodwill Useful life Substitute $3,847 for the value of the goodwill and 10 years for the useful life. Amortization = $ 3 , 847 10 = $ 384.7 Hence, the amortization of G Company is $384.7. The treatment of amortization by G Company is done by treating them as expenses and will come under the profit and loss account. The treatment of all the intangible assets is the same as for the goodwill. Hence, the amortization is $384.7 and is treated as an expense by the company.

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