Differences between amortization and capitalization?

Feb 01, 2007 0 Replies

I'm under the impression that only differences are that amortization does not involve an interest portion and equity portion. Instead, items such as depreciation, are amortized as an expense every year.



On the other hand, capitalization involves an annuity chart, an interest rate, and a schedule. The equity portion and the interest portion are recorded.



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