The cost incurred to enhance the service potential of a capital asset is betterment and should be expensed immediately.

Name: The cost incurred to enhance the service potential of a capital asset is betterment and should be expensed immediately.
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The cost incurred to enhance the service potential of a capital asset is considered a capital expenditure (not an expense) and should be capitalized as part of the cost of the asset. This cost is then depreciated over the useful life of the asset.

The Cost Incurred to Enhance the Service Potential of a Capital