Culver Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, included product X. Relevant per-unit data for product X are as follows.

Estimated selling price $53 Cost Estimated selling costs Normal profit There were 1,070 units of product X on hand at December 31, 2017. Product X was incomectly valued at $44 per unit for reporting purposes. All 1,070 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. Net income for 2017 Net income for 2018