When Bennett Resources bought their new cutting machine in $2010,$ the supplier estimated that the machine would have a useful life of $20$ years. However, $10$ years later, in $2020,$ it becomes obvious that the machine will no longer be useful after $12$ years. How should this change be recorded?

Select answer from the options below

The company should make an adjustment to the Depreciation Expense account for the years $2010-2020$ and update the financial statements accordingly.

The company should make an adjustment to the Depreciation Expense account for the $2020$ financial statements.

The company should make an adjustment to the Retained Earnings account on the income statement for $2020.$

The company should make an adjustment to the Retained Earnings account on the income statement for $2010$ and all subsequent years.