Chapter 9, Problem 14Q

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Amortization: Itis the process of allocating the value of an intangible asset over its estimated useful life such as patent, copyright, and trademark.

To state: the similarities and differences between depreciation and amortization.