Final answer:
The statement is true; the $2,000 repair cost is deductible in the year the service is performed, reflecting the economic performance.
Step-by-step explanation:
The statement that the $2,000 cost of the repairs is not deductible in year 0 but rather in year 1 because economic performance occurs when the services are performed is true. According to the tax code, businesses are allowed to deduct expenses in the year in which the economic performance occurs, which typically aligns with when the service is provided or the property is utilized. This rule ensures that expenses are matched with the revenue of the period in which they are incurred, reflecting a more accurate picture of the financial position.