ABC Company made an ordinary repair to a delivery truck during 2020 at a cost of $500 and capitalized the $500 repair cost. What is the effect on the 2020 financial statements as a result of the capitalization of the $500 instead of immediately expensing it in 2020 ? The financial statements are not affected. Assets and stockholders' equity are both understated. Assets are overstated and net income is overstated. Assets are understated and net income is overstated