Sherry Miller, ARNP is a medicare enrolled Nurse Practitioner - Family in Mason City, Iowa. She graduated from nursing school in 2015 and has 3 years of diverse experience with area of expertise as Nurse Practitioner.
Major repairs to production equipment should be capitalized. The repair to the asset will extend the useful life of the piece of equipment, which is an allowable reason to capitalize an expense. Companies should be careful, however, to not capitalize the maintenance cost of a piece of equipment.
If you are leasing something, it is generally not capitalized unless you end up purchasing it (or in certain situations with a Capitalized Cost Reduction against a lease--like many pre-paid leases). Equipment leases are usually off-balance sheet (operating) leases and are expensed on the income statement.