Property Management
In a property management context, deferred maintenance becomes capitalized when:
AIt is never repaired
BThe cost of the repair extends the property's useful life or adds value beyond a normal repair✓ Correct
CIt is expensed in the year incurred
DThe tenant requests the repair in writing
Explanation
Deferred maintenance is expensed as incurred. However, improvements that extend useful life or materially add value are capitalized (added to the asset's cost basis) rather than immediately expensed.
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