Multiple Choice
Gilbert Company made an ordinary repair to a delivery truck during 2010 at a cost of $500 and capitalized the repair cost.What will be the effect on the 2010 financial statements as a result of the capitalization?
A) The financial statements aren't affected.
B) Assets and net income are both overstated.
C) Assets are overstated and net income was understated.
D) Assets and stockholders' equity are both understated.
Correct Answer:
Verified
Correct Answer:
Verified
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