deduction - repairs

Question 1

Flemming

Answer 1

The expenditure incurred must be as a result of damage or the need to repair an asset that has been subject to use, in order to be classified as a repair. The cost must maintain the income earning ability of the asset, not improve this.

Question 2

African products manufacturing

Answer 2

Repair is restoration. Restoration can either be by replacement or renewal of parts of the hole
Materials need not be the same
Repair is different from an improvement which is creating a better asset