Which statement best describes amortization in the context of intangible assets purchases during 2017-2025?

• A. It includes only amortization for new intangible assets purchased during 2017-2025
• B. It includes amortization for all intangible assets regardless of purchase date
• C. It is not amortization
• D. It is the same as depreciation

Answer: (A)

Amortization is the systematic allocation of the cost of an intangible asset over its estimated useful life, starting when the asset is available for use. In the 2017–2025 window, the amortization reported relates to intangible assets that were newly purchased and placed into service during that period, with their cost being expensed over their useful lives. Assets bought before 2017 would have had their amortization recognized in earlier years (or according to their remaining schedule), so the 2017–2025 amortization reflects only the newer acquisitions during that timeframe. It’s not the same as depreciation, which applies to tangible assets, and it wouldn’t include amortization for all intangibles regardless of purchase date.