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Prouve Company made an ordinary repair to a truck during 2020 at a cost of $900 and capitalized the repair cost. What is the effect

Prouve Company made an ordinary repair to a truck during 2020 at a cost of $900 and capitalized the repair cost. What is the effect on the 2020 financial statements as a result of the incorrect capitalization? Assets are overstated and net income is overstated. Assets are understated and net income is overstated. Assets and stockholders' equity are both understated. The financial statements are not affectedimage text in transcribedimage text in transcribed

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