Viewing Tweets won't unblock @SarahBarthel. 1  Sarah BarthelâVerified account @SarahBarthel 17 Oct 2016. 2  Sarah BarthelâVerified account @SarahBarthel 7 Oct 2016. 3  Sarah Barthel Retweeted.  Sarah Barthel 1  Retweeted. Sarah BarthelâVerified account @SarahBarthel 1 Aug 2016.  Sarah BarthelâVerified account @SarahBarthel 29 Jul 2016.
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.
The cash basis taxpayer has deducted costs associated with patent development as the costs are incurred. The legal and filing costs associated with the patent are carried as an intangible asset and are expensed ratably over 15 years. An accrual basis taxpayer is also allowed to amortize (expense) the costs of the patent ratably over a 15 year period.