⚙️Depreciation is the process of gradually expensing the cost of fixed assets, while depletion is the process of expensing the cost of natural resources.
🌳Natural resources are assets formed naturally over time and include timber, minerals, and oil.
💡Depreciation and depletion resemble the units of activity method, where the cost is allocated based on the quantity extracted or used.
📜Amortization is the process of expensing the cost of intangible assets like patents, copyrights, trademarks, and goodwill.
💼Amortization is typically done using the straight-line method, dividing the cost of the asset by its useful life.