Ordinary Repairs vs. Capital Improvements Video Lessons

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Problem: A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of six years. The $50,000 cost of this repair is: a. a revenue expenditure. b. A capital expenditure. c. an ordinary repair and maintenance expenditure. d. either (A) or (B).

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A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of six years. The $50,000 cost of this repair is:

a. a revenue expenditure.

b. A capital expenditure.

c. an ordinary repair and maintenance expenditure.

d. either (A) or (B).

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