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.
How do I avoid double counting on my profit and loss statement? -- TomBest Banks for Savings -- View Today's Rates!Dear Tom, You avoid double counting the equipment on your profit and loss statement by capitalizing the original cost as an asset on your balance sheet or statement of financial position.The liability is also recorded at the same time on your balance sheet.epreciation is an accounting concept that applies to a business' fixed assets, such as buildings, furniture and equipment. It spreads the cost of the fixed asset over its useful life so that the expense of the asset can be matched to income.