A change in the estimated useful life and residual value of machinery in the current year is handled as:

Multiple Choice

A retrospective change back to the date of acquisition as though the current estimated life and residual value had been used all along.

A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old estimates.

A prospective change from the current year through the remainder of its useful life, using the new estimates.

All of these answer choices are incorrect.