Pronghorn 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: Estimated selling price $53 Cost Replacement cost Estimated selling expense 20 Normal profit 51 15 There were 1,000 units of product AG on hand at December 31, 2016. Product AG was incorrectly valued at $37 per unit for reporting purposes. All 1,000 units were sold in 2017. Assume that Pronghorn follows ASPE and answer the following questions Was net income for 2016 overstated or understated? By how much (ignore income tax aspects)? Net income for 2016 is by $