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Hi! Iamp;#39;m Jonathan Wild and we are going to cover ordinary repairs, betterments, and extraordinary repairs. For plant assets to be used for many years, they need to be kept in good working condition by making repairs and improvements. In accounting, we have to decide whether to immediately expense these costs or to capitalize them. This depends on whether the costs are considered ordinary repairs, betterments, or extraordinary repairs. So first, ordinary repairs are costs to keep a plant asset in good working condition, and do not increase its useful life or improve its productivity or efficiency. Examples of ordinary repairs include changing oil and replacing small parts. To account for these costs, we expense ordinary repairs on the current-period income statement. As an example, letamp;#39;s say a company has ordinary repair costs of $800. We record this by debiting Repairs Expense for 800 and crediting Cash for 800. Next, betterments are differe
