A company made a material 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:

Multiple Choice

on the Year $1$ statement of retained earnings.

on the Year $2$ income statement.

on the Year $2$ statement of retained earnings.

on the Year $1$ income statement.

accounted for with a cumulative "catch$-$up$"$ adjustment in Year $2$