The CFO of the Solomon Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $627,900 as a product cost in an accounting period when the company made 9,100 microscopes and sold 6,900 microscopes. Solomon rewards its officers with bonuses that are based on net earnings.

Required

Indicate whether the components of the financial statements (i.e., assets, liabilities, stockholders' equity, revenue, expense, and net income) would be overstated or understated as a result of the misclassification of the downstream transportation expense. Determine the amount of the overstatement or understatement for each element.

Note: If there is no effect, select "Not affected" from the dropdown provided. Enter all answers as positive values.