Two spending decisions on the same machine, one expensed and one capitalized.
| Repairs expense | 150 | ||
| Cash | 150 |
| Machinery | 1,200 | ||
| Cash | 1,200 |
keep an asset as it was — like an oil change. They are expensed immediately, matched against the period they benefit.
buy something more: make an asset better, and extend its life beyond the original estimate. Both get added to the asset's cost instead.