KLF Co Inadvertently Recorded a $7,000 Betterment as an Ordinary Repair

Multiple Choice

KLF Co. inadvertently recorded a $7,000 betterment as an ordinary repair. Which of the following will occur as a result of this mistake?

A) Assets will be overstated by $7,000.
B) Assets will be understated by $7,000.
C) Net income will be overstated by $7,000.
D) Retained Earnings will be overstated by $7,000.