The treatment of repairs and additions to property,plant and equipment can be best described as:
A) written off as incurred.
B) capitalised when it maintains a certain level of service.
C) capitalised when the asset's estimated useful life is extended.
D) none of the given answers.

Question

Quizplus · Accepted Answer

Repairs and additions to property, plant, and equipment are capitalized when they extend the asset's estimated useful life or enhance its value beyond the original condition.

The Treatment of Repairs and Additions to Property,plant and Equipment