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overhaul

Aanonymous11y ago
dear Sir Mike What is overhaul expense? and is it capitalised?
MikeLittleMikeLittleTutor11y ago#1
Hi It's repair and renewals! To overhaul an engine is to take it out of its normal environment,. strip it down, replace anything that needs replacing and then re-commissioning it. If it improves the earning capacity of the asset, then it's capitalised. If it merely extends its useful economic life, then it's expensed.
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