if a firm purchase second hand machinery and repair it after 10 days ,does it is capital expenditure or revenue expenditure in case of
1 - if machine is not used during this 10 days
2 - if machine is used ?
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If a firm purchase second hand machinery
Replies (1)
The capitalisation of the repair expenses willd epend upon the following factors like:
1. Whether the value of the machinery increses post this repair.
2. Whether the repair to the machinery will enhance the capacity of the machine and will bring monetary benfit to teh company.
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