Distinguish between ordinary repairs and capital expenditure

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Reference no: EM131829007

Question: 1. Distinguish between ordinary repairs and capital expenditures during an asset's useful life.

2. Breton Inc. needs to upgrade its diagnostic equipment. At the time of purchase, Breton had expected the equipment to last 8 years. Unfortunately, it was obsolete after only 4 years. Nolan Rush, CFO of Breton Inc., is considering leasing new equipment rather than buying it. What are the potential benefits of leasing?

Reference no: EM131829007

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