hard · CFA Level I quant

Helion Rail is considering a change in its depreciation estimate for its locomotive fleet, increasing the useful life from 10 to 15 years. This change should be accounted for:

  1. Prospectively, with no restatement of prior periods.
  2. Through a direct adjustment to beginning retained earnings in the year of change.
  3. Retrospectively, by restating all prior years presented.

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