The cost of a plant asset was increased for the payment of this year's insurance premium.This error would cause:

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Increasing the cost of a plant asset for an insurance premium payment would mean that the expense is capitalized as part of the asset cost, rather than being recognized as an expense in the current period. This would overstate the value of the asset and thus cause the period's net income to be overstated.

The Cost of a Plant Asset Was Increased for the Payment