over/understated

Hi,

I am interested about the following question:

Lux Co has discovered that the profit on sale of a non-current asset has not been included in the financial statements correctly. An item of plant with a carrying value of $15,800 was sold for $14,200 during the year. The only accounting entry has been to:

$
Dr Cash 14,200
Cr Profit on disposal 14,200

What will the effect on non-current assets and profit be if this error is not corrected?

Non-current assets overstated
Profit overstated

Is it because of the carrying value is 15800 was sold for 14200 so there is a loss on the value 1600. Sot it means this should happen:

Dr cash 1600
Cr Loss on disposal 1600

So both non current assets and profit will be overstated with 12600, am I right?

I am quite confused with the over/understated if it is not correct,

Thank you in advancve!