Blue Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, included product Z. Relevant per-unit data for product Z appear below. Estimated selling price 547 Cost 37 37 Replacement cost Estimated selling expenses Normal profit 13 10 There were 5,600 units of product Zon hand at December 31, 2017. Product Z was incorrectly valued at $37 per unit for reporting purposes. All 5,600 units were sold in 2018. Compute the effect of this error on net income for 2017 and the effect on net income for 2018, and indicate the direction of the misstatement for each year. Effect of net income for 2017 $