the cost of repairs to business property: a. must be capitalized if the repairs maintain the...

the cost of repairs to business property:

a. must be capitalized if the repairs maintain the working condition of the property

b. must be capitalized if the repairs substantially improve the asset

c. must be expensed if the repairs materially prolong the life of the asset

d. must be expensed in the year paid

Solutions

Expert Solution

Answer - b. must be capitalized if the repairs substantially improve the asset

Explanation -

As per IRS, the cost of repairs that improve the asset or add to the value of property is considered as the capital expense and these will be capitalized with the business aseet.

ekkarill92 answered 1 year ago

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