Question

Extraordinary repairs: Multiple Choice Are revenue expenditures. Extend the useful life of an asset beyond its original estimate. Are credited to accumulated depreciation. Are additional costs of plants assets that do not materially increase the asset's life. Are expensed when incurred

Answer 1

Answer:

Extend the useful life of an asset beyond its original estimate

Explanation:

An extraordinary repair is a major repair that is done to an asset that extends the asset's useful life beyond what was forecasted initially. In other words, an extraordinary repair is an overhaul or upgrade or hat makes an asset to last longer.

Extraordinary repairs are capitalized. This means that the cost of repair increases the asset's book value thereby increasing the depreciation expenses over the asset's revised remaining life.