In 2025, Carla Vista Company discovered an error while preparing its 2025 financial statements. A building constructed at the beginning of 2024 costing $1290000 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line depreciation is used. Carla Vista properly included depreciation on its tax return also using straight-line depreciation. Income tax payable was also reported correctly at a tax rate of 20%. Income before depreciation expense in 2025 was $390000. What was the impact on the following accounts at the start of 2025 ? Accumulated Depreciation was understated by $43000 and net income was overstated by $43000. Accumulated Depreciation was understated by $43000 and Retained Earnings was overstated by $34400. Accumulated Depreciation was understated by $86000 and Retained Earnings was overstated by $34400. Accumulated Depreciation was overstated by $43000 and net income was understated by $43000