Bertram Inc. purchased new state$-$of$-$the$-$art equipment. Its previously used equipment, which was recently retired, was depreciated over a useful $($service$)$ life of ten years. The firm$$s accounting manager continued depreciating the new equipment over a ten$-$year useful life. Two years after acquisition, an audit reveals that a five to six$-$year useful life would have been more appropriate. Addressing this issue represents a

Multiple Choice

change in entity.

change in accounting estimate.

correction of error.

change in accounting principle.