A Company Made an Error in Calculating and Reporting Amortization

Multiple Choice

A company made an error in calculating and reporting amortization expense in Year 1.The error was discovered in Year 2.The item should be reported as a prior period adjustment:

A) on the Year 1 statement of retained earnings.
B) on the Year 1 income statement.
C) on the Year 2 statement of retained earnings.
D) on the Year 2 income statement.
E) accounted for with a cumulative "catch-up" adjustment in Year 2.