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Speedy delivery service recently hired a new accountant who discovered that the prior accountant had erroneously capitalized routine repair and maintenance costs on delivery trucks.

Speedy delivery service recently hired a new accountant who discovered that the prior accountant had erroneously capitalized routine repair and maintenance costs on delivery trucks. As a result, the costs were added to the trucks book values and depreciated over time. How should Speedy have recorded routine maintenance and repair costs? What effect did the error have on Speedys balance sheet and income statement?

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