The following figure is an example of the overlap rule.
Definitions:
Extraordinary Repair
Significant expenditures that extend the life of an asset or improve it beyond its original condition, often capitalized and not expensed immediately.
Machinery
Equipment, tools, and machines used in manufacturing or any industrial production process.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset over its useful life.
Extend Life
Approaches or maintenance activities aimed at prolonging the functional lifespan of an asset, machinery, or system.
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