How to calculate Google's Amortization?



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Sir in depriciation and amortization module there is a question ie if google declares that it has inventions worth 50 million dollars amortization costs rise.Kindly explain

1 Answer(s)


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Amortization is how intangible expenses like R&D are treated in the income statement. So if Google spend $50mn in R&D or inventions in a given year, then that entire amount in capitalized in the balance sheet and expensed part by part every year.

Hence if Google spend money on R&D/inventions then amortization cost on the income statement increases.