Is repaving a parking lot capitalizable?

Answer 1

Yes, repaving a parking lot is generally considered a capitalizable expense because it significantly enhances the value and extends the useful life of the property. Capital expenditures, such as repaving, are recorded on the balance sheet as assets rather than immediate expenses on the income statement. However, routine maintenance or minor repairs that do not significantly improve the property may be expensed instead. It's important to consult accounting standards and guidelines for specific capitalization criteria.