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.
A replacement may also be capitalized if the new item/part is of significantly improved quality and higher value compared to the old item/part such as replacement of dirt parking lots with asphalt materials. Replacement or restoration to original utility level would notbe capitalized.