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.
Prior to the issuance of these regulations, there was no definitive standard as to what constituted deductible repairs or capitalized improvements. Among the many sections that make up the repair regulations, there is one provision on the treatment of leasehold improvements that should not be overlooked [1].