Section 441.31 - Amortization

441.31 Amortization. (a) The gradual extinguishment of any amount over a period of time: as, the retirement of a debt by serial payments to the creditor or into a sinking fund; the periodic writedown of an insurance premium or a bond premium.

(b) A reduction of the book value of a fixed asset: a generic term for the depreciation, depletion, writedown or writeoff of a limited-life asset.
 

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