AccountingHub
P2

Used up, or used over time

A mine is used up. A patent runs out. Neither wears out the way a machine does.

Depletion — 20,000 of 250,000 tons mined
Depletion expense40,000
Accumulated depletion—Mine40,000
Amortization — a 10-year patent
Amortization expense—Patents3,000
Accumulated amortization—Patents3,000

are physically removed and sold; allocates their cost per unit extracted, the same logic as units-of-production depreciation.

— a , , or — have no physical form but a real legal life. spreads their cost over that life. is the one exception: never amortized, only tested for when its value might have fallen.