Cole 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		$ 51
Cost		41
Replacement cost		39
Estimated selling expenses		14
Normal profit		9

There were 3,500 units of product Z on hand at December 31, 2017. Product Z was incorrectly valued at $ 39 per unit for reporting purposes. All 3,500 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		$ enter a dollar amount

	Effect of net income for 2018		$ enter a dollar amount