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 2 statement of retained earnings.

b. on the Year 1 statement of retained earnings.

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

d. on the Year 2 income statement.

e. on the Year 1 income statement.