if the repair gonna increase it's it productivity then it's not a repair it's an upgrade. but let's assume our repair unpurposely increased the productivity of our asset, which doesn't happen in real work environments, but if so we will use this equation: capitalization of cost = The price paid in excess of the need to repair the equipment(asset). The price paid in excess of the need to repair the equipment = price paid - real cost needed to only repair the equipment(asset).
Great explanation
you are amazing! thank you so much
Thank you 🙏
No problem!
What would happen if the equipment needs a repair, but the repair would include an upgrade thus increasing its productivity?
if the repair gonna increase it's it productivity then it's not a repair it's an upgrade.
but let's assume our repair unpurposely increased the productivity of our asset, which doesn't happen in real work environments, but if so we will use this equation:
capitalization of cost = The price paid in excess of the need to repair the equipment(asset).
The price paid in excess of the need to repair the equipment = price paid - real cost needed to only repair the equipment(asset).
0:14 we have that machine now. The machine for bitcoin mining, lol
😂
capitalize the wheels