Martinez Corporation uses the lower of FIFO cost and net realizable value method on an individual item basis, applying the direct method. The inventory at December 31, 2016, included product AG. Relevant per-unit data for product AG follow: $ 58 51 Estimated selling price Cost Replacement cost Estimated selling expense Normal profit 60 20 16 There were 1,500 units of product AG on hand at December 31, 2016. Product AG was incorrectly valued at $41 per unit for reporting purposes. All 1,500 units were sold in 2017. Assume that Martinez follows ASPE and answer the following questions. (a) Was net income for 2016 overstated or understated? By how much (ignore income tax aspects)? Net income for 2016 is by $