Kingbird Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2025, included product X. Relevant per-unit data for product X are as follows. Estimated selling price $50 Cost Estimated selling costs Normal profit 40 13 There were 960 units of product X on hand at December 31, 2025. Product X was incorrectly valued at $39 per unit for reporting purposes. All 960 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 $