Question: IBM made a material error in calculating and reporting amortization expense in Year 1 . The error was discovered in Year 2 . Where would

IBM made a material error in calculating and reporting amortization expense in Year 1. The error was discovered in Year 2. Where would the adjustment for this past error be reported?
Multiple Choice
accounted for with a cumulative "catch-up" adjustment in Year 2.
on the Year 1 income statement.
on the Year 1 statement of retained earnings.
on the Year 2 income statement.
on the Year 2 statement of retained earnings.

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