USA Capitalization

[E. Dantes]

Should replacement parts that exceed a company's capitalization threshold for a particular class of fixed assets be capitalized? If so, should they be depreciated right away?

 

[Triest123]

The replacement parts should be treated as the expenses of "repair & maintenance"
as the spare parts of the equipment are expected to be consumed when it is in use
unless the replacement parts can increase the productivity or enhance the features
of the equipment.

 

[tshields]

The replacement parts should be treated as the expenses of "repair & maintenance"
as the spare parts of the equipment are expected to be consumed when it is in use
unless the replacement parts can increase the productivity or enhance the features
of the equipment.

This is the best answer, just remember that it's within the "repair & maintenance" section. Once you identify the right section, then you can break down the expenses from there.