The cost of a major inspection of an airplane engine would be capitalized if it occurred several times per year.

Question

Quizplus · Accepted Answer

The cost of routine maintenance and inspections are typically expensed as incurred and not capitalized as they do not increase the useful life or capacity of the asset. Only major overhauls or upgrades that significantly extend the useful life or capacity of the asset would be capitalized.

The Cost of a Major Inspection of an Airplane Engine