Repair costs incurred to keep a tangible asset in good working order must be capitalized to the cost of the asset.

Name: Repair costs incurred to keep a tangible asset in good working order must be capitalized to the cost of the asset.
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Question

Quizplus · Accepted Answer

Repair costs are considered maintenance expenses and are expensed in the period in which they are incurred, rather than being capitalized to the cost of the asset. Only costs that improve or extend the useful life of the asset are capitalized.

Repair Costs Incurred to Keep a Tangible Asset in Good