Jennifer's first concern is that OHB is not accounting for its capital assets correctly. She asks you to meet with Robyn Worth, who has been responsible for most of the record keeping at OHB since it was founded in January 2018. At your meeting, Robyn shares the following:

"Capital assets at OHB consist mainly of the equipment and machines used to administer oxygen and IV vitamin infusions to our customers. I track all of the assets and their accumulated depreciation in an Excel spreadsheet, where I depreciate the machines and equipment over their useful lives.

"We pay an external party to service the oxygen machines on a quarterly basis. This ensures their continued cleanliness and functionality. The service provider makes regular maintenance visits and special service calls if need be. For example, if one of the oxygen concentrators stops working, we just call the service provider and they willensure it's back up and running right away. For this, we pay a flat quarterly fee, plus the cost for any additional replacement parts required. So far, there have been no charges above the flat quarterly fee. I include the costs in the fixed assets register and depreciate them along with the rest of the equipment."

Perform an analysis of the treatment of the quarterly service fees to determine whether it is in accordance with ASPE.