Asked by Matthew Eskender on Jul 21, 2024
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Ordinary repairs and maintenance costs are incurred to maintain a long-lived productive asset and are expensed as incurred.
Ordinary Repairs
Ordinary repairs are routine maintenance expenses undertaken to maintain the efficiency and operating condition of an asset but do not significantly extend its life.
Maintenance Costs
Expenses incurred to keep property, equipment, or machinery in efficient operating condition and repair.
Productive Asset
Assets that are used by a business to generate revenue, which can include physical property, equipment, and machinery, among other items.
- Understand the rules for capitalizing or expensing costs related to the acquisition, development, and maintenance of assets.
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Learning Objectives
- Understand the rules for capitalizing or expensing costs related to the acquisition, development, and maintenance of assets.
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