Bailey Limited has discovered that the estimated useful life for a material depreciable asset needs to be updated due to a change in the way the asset is being used. The correct accounting treatment for this event is to:

Group of answer choices

treat it as a change in an accounting estimate and adjust prospectively.

treat it as a change in accounting policy and adjust prospectively.

treat it as an error and adjust retrospectively.

treat it as a change in an accounting estimate and adjust retrospectively.