In Year 2, Fogg, Inc., issued $10 par value common stock for $25 per share. No other common stock transactions occurred until March 31, Year 4, when Fogg acquired some of the issued shares for $20 per share and retired them. Which of the following statements accurately states an effect of this acquisition and retirement?

A) Year 4 net income is decreased.

B) Year 4 net income is increased.

C) Additional paid-in capital is decreased.

D) Retained earnings is increased.