Gonzo Company made an ordinary repair to a delivery truck during 20x9 at a cost of $1,500 and capitalized the repair cost. What is the effect on the 20x9 financial statements as a result of the incorrect capitalization? Assets and stockholders' equity are both understated. Assets are overstated and net income is overstated. None of the other answers listed are correct. The financial statements are not affected. Assets are understated and net income is overstated