1.[Related to the Economics in Practice ] Depreciation, or the amount by which an asset’s value falls in a given period, is a term primarily used for tangible assets, such as computers. For intangible assets, the term amortization is used. Computer software is generally considered an intangible asset, and its value can be amortized over time. The tax treatment of computer software, however, can be confusing because its amortization schedule is based on how it was acquired. If software is acquired as a part of the acquisition of a business, it must be amortized over 15 years. If software is purchased separately, it can be amortized over 36 months. Bundled software that is included in computer hardware is not amortized, but rather the entire value of the computer, including the bundled software, is depreciated over the life of the hardware, which is normally set at 5 years. Therefore, identical software is treated differently in terms of loss of value over time depending on how it is acquired. How might these different time periods for amortization and depreciation affect the government’s ability to estimate GDP? How does the amortization of software affect the measure of real production in an economy as measured by GDP? Suggest a better way to amortize computer software. Do you think there is a more logical, standardized length of time for amortization, regardless of how it was acquired? Briefly explain.