Bragg Company owns a plant asset that originally cost \(\$ 240,000\) in 1995. The asset has been depreciated for three years assuming an eight-year useful life and no salvage value. During 1998, Bragg incorrectly capitalized \(\$ 120,000\) in repairs on the plant asset rather than expensing them. Describe the impact of this error on the asset's cost and Bragg's net income over the next five years.