one of those is wrong pls help!

Continuing from Question 2... Scenario C: On March 1, 2018, Desert discovered that R&D costs of $150,000 for 2016 were capitalized as a part of the Historical Cost of the Patent, instead of being expensed. Income from Continuing Operations for 2018 includes the current year's R&D costs of $125,000 as an expense. 1. What type of scenario is addressed? Correction of an Error 2. What adjustment (if any) is needed to Desert's ICO for 2018? No Change Needed 3. Does Desert need to restate its 2016 financial statements? No Answer 1: Correction of an Error Answer 2: No Change Needed Answer 3: No