The Bourbon Street Ice Cream Company Discovers That Depreciation Expense

Multiple Choice

The Bourbon Street Ice Cream Company discovers that depreciation expense was overstated last year. How should this discovery be reported in the current year?

A) as a reduction in the current year's depreciation expense
B) as an increase to the retained earnings beginning balance
C) as a miscellaneous item in the Other Revenue/Expense section of the income statement
D) as a footnote only to the current year's financial statements