Company Z revised the estimate of the useful life of one of its depreciable assets. How would Company Z correctly report this change per U.S. GAAP?

A.

None of the answers are correct.

B.

Depreciation is always based on initial estimates; therefore, no further action is needed.

C.

Apply the new estimate retrospectively; revise financial statements if necessary.

D.

Apply the new estimate prospectively to any future calculations.

E.

The estimate could be applied prospectively or retrospectively