In 2025, Pharoah Company discovered anerror while preparing its 2025 fivancial statements. A building constructed at the beginning of 2024 costing $1260000 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line depreciation is used. Pharoah 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 $360000. What was the impact on the following accounts at the start of 2025 ? Accumulated Depreciation was overstated by $42,000 and net income was understated by $42000. Accumulated Depreciation was understated by $84000 and Retained Earnings was overstated by $33600. Accumulated Depreciation was understated by $42000 and net income was overstated by $42000. Accumulated Depreciation was understated by $42000 and Retained Earnings was overstated by $33600