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Amortization of Intangible Assets. To illustrate the amortization of an intangible asset, imagine XYZ Biotech spends $30 million dollars on a patent with a useful life of 15 years. Theoretically, to account for the expense over a 15-year period, XYZ Biotech records $2 million each year as an amortization expense.
Trademark Amortization Rules. Rules for amortizing a trademark depend on the trademark's expected life. Brand X Pictures/Brand X Pictures/Getty Images. A trademark is a type of intangible, or nonphysical, asset that gives a business the exclusive right to use a name, phrase or logo.Amortization is the process of allocating, or spreading out, the cost of an intangible asset over its useful life.he annual amortization expense is $15,000, or $60,000 divided by four. To amortize the trademark, debit the amortization expense account and credit the trademark account annually by $15,000.