The CFO of the Vernon Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $$758,400$ as a product cost in an accounting period when the company made $9,600$ microscopes and sold $7,500$ microscopes. Vernon rewards its officers with bonuses that are based on net earnings.

Required

Indicate whether the elements on the financial statements $($i$.$e$.,$ assets, liabilities, 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.