Blue Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items, The irventory at December 31 . 2025 , included product X. Relevant per-unit data for product X are as follows. There were 940 units of product X on hand at December, 31, 2025. Product X was incorrectly valued at $37 per unit tor reporting purposes. All 940 units were sold in 2026 Compute the effect of this error on net income for 2025 and the effect on net income for 2026 , and indicate the direction of the misstatement for each year. Net income for 2025 Net income for 2026