Question

​Pat's Pets recently paid​ $15,000 to have the engine in its delivery van overhauled. The estimated useful life of the van was originally estimated to be 4 years. The overhaul is expected to extend the useful life of the van to 10 years. The overhaul is regarded as​ a

Answer 1

The overhaul is regarded as an asset Capitalize under delivery van account.

Step-by-step explanation:

the overhaul wil be capitalized, because it wasn't a maintenaince to keep the same level. It was an upgraded, It added value tothe asset.

so it will be included in the delivery van account.

The overhaul is regarded as an asset

delivery van 15,000 debit

cash 15,000 credit