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.
Repairs and maintenance expenses only maintain an assetâs life or current condition. For example, replacing a broken part on an engine is a repair expense, while upgrading the engine to increase a machineâs capacity is a capital expenditure.A company expenses an entire repair or maintenance expense at one time, but allocates a capital expenditure as an expense over time.or example, replacing a broken part on an engine is a repair expense, while upgrading the engine to increase a machineâs capacity is a capital expenditure. A company expenses an entire repair or maintenance expense at one time, but allocates a capital expenditure as an expense over time.