CAPITAL ADDITION Definition

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CAPITAL ADDITION is a. new (as opposed to replacement) part added to an existing non-current productive asset (e.g., equipment) used for business purposes that increases the useful life and service potential of the asset; or, b. in taxation, cost of capital improvements and betterments made to the property by a taxpayer.

Learn new Accounting Terms

LBO see LEVERAGED BUY-OUT.

OCF see OPERATING CASH FLOW.

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