III. Costs related to an asset placed into service a. Revenue Expenditures i. Ordinary maintenance and repairs ii. Benefit the current period iii. Maintain the operating efficiency and usefulness of the asset 1. Expensed when incurred b. Capital Expenditures i. Improve the efficiency (usefulness) or extend the useful life of the asset 1. If the useful life is extended, debit Accumulated Depreciation 2. If the usefulness of the asset is improved, debit the Asset III. Costs related to an asset placed into service a. Revenue Expenditures i. Ordinary maintenance and repairs ii. Benefit the current period iii. Maintain the operating efficiency and usefulness of the asset 1. Expensed when incurred b. Capital Expenditures i. Improve the efficiency (usefulness) or extend the useful life of the asset 1. If the useful life is extended, debit Accumulated Depreciation 2. If the usefulness of the asset is improved, debit the Asset