Denim, Inc. purchased a building on January 1, 2010. The building cost $2,600,000 and had an estimated salvage value of $200,000. As of January 1, 2010, Denim estimated the useful life of the building to be 30 years. The building is depreciated using the straight-line method.

On January 1, 2020, Denim, Inc. determined the building to have a remaining useful life of 15 years and an estimated salvage value of $300,000.

What type of accounting change does this represent by placing an X in the space provided?

____Change in accounting principle.

____Change in accounting estimate.

____Change in reporting entity.

____Correction of an error.