Utra Inc. purchased a building on January 1, 20X2. The original cost of the building is $250,000 and it had an estimated life of 25 years with no salvage value. On January 1, 20X5, the company sold the building for $250,000, and credits sales revenue account for $30,000. Other accounts are correctly entered. Identify the correct statement from the following.

Net income is correctly stated

The accumulated depreciation account is overstated

The company's revenue is understated

The retained earnings are understated

Net income is understated