Accumulated Amortization
Accumulated amortization is a contra-asset account that records the total amortization expense charged against a company's intangible assets since they were acquired, reducing their net book value.
Example: For example, a patent recorded at $1,000,000 with $100,000 of annual amortization will see accumulated amortization increase by $100,000 each year, and the patent's net book value will decline by the same amount.
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