Extraordinary repairs are expenditures extending the asset's useful life beyond its original estimate,and are capital expenditures because they benefit future periods.

Extraordinary Repairs

Significant repairs that extend the useful life of an asset far beyond the current accounting period, often involving major overhaul or reconstruction.

Useful Life

The estimated period of time an asset is expected to be functional and economically usable by an organization.

Capital Expenditures

Capital employed by a corporation to purchase or enhance tangible assets like real estate, manufacturing facilities, or machinery.