Metlock 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 $$49$

$\backslash$table$[[$Cost$,40],[$Estimated selling costs,$14],[$Normal profit,$10]]$

There were $1,050$ units of product $x$ on hand at December $31,2025.$ Product $x$ was incorrectly valued at $$41$ per unit for reporting purposes. All $1,050$ 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.