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.
Heavy equipment. The biggest distinction from a cost standpoint is if a repair is classified as a major repair or a minor repair. A major repair can change the depreciable equipment value due to an extension in service life, while a minor repair is normal maintenance.