What assets should be amortized using the straight-line method?

A. Intangible assets with definite lives

B. Intangible assets with indefinite lives

C. Natural resources

D. All of the above

A. Intangible assets with definite lives

Explanation:

Amortization is the reduction in the book value of an intangible asset over its useful life.

Debts are also amortized.

Amortization is the expensing of the cost of an intangible asset.

Amortization is calculated by subtracting the cost of the intangible asset from the salvage value and dividing by the useful life.

Intangible asset with an indefinite life isn't amortized but checked yearly for impairment.

Natural resources are depleted. It is similar to amortization.