The auditor discovers that XYZ improperly capitalized a repa…

The auditor discovers that XYZ improperly capitalized a repair expense. In other words, the company improperly capitalized an item that should have been recorded as an expense. If this mistake is not corrected, how will this error affect the financial statements and net income? Assets [choice1] Liabilities [choice2] Revenues [choice3] Expenses [choice4] Net income [choice5]