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3.0.2 a major expenditure made to equipment that extends its useful life beyond the original estimate is journalized by
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debiting depreciation expensel
crediting depreciation expense
debiting equipment
debiting repairs expense
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When a major expenditure is made on equipment that extends its useful life beyond the original estimate, it is a capital expenditure. Capital expenditures are capitalized (added to the asset account). Equipment is an asset account. Debiting equipment records the increase in the asset value due to the capital expenditure.
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debiting equipment