Lesson: Tangible Versus Intangible Assets

In this lesson, Nick Palazzolo, CPA, dives into the distinctions between tangible and intangible assets, making these concepts easily digestible with the help of a clear, comparative chart. By elaborating on key differences such as physical existence, depreciation versus amortization methods, and challenges in liquidation and valuation, Nick simplifies the intricacies associated with these asset classes. He explains why tangible assets, like property, plant and equipment (PP&E), are depreciated, while intangible assets, such as patents and trademarks, are subject to amortization, and he outlines the practicalities of handling these assets in real-world scenarios versus exam-focused situations.