For Year 1, Pathorn Co, estimated its two-year equipment warranty costs based on $100 per unit sold in Year 1. Experience during Year 2 indicated that the estimate should have been based on $110 per unit. The effect of this $10 difference from the estimate is reported: Multiple Choice as a correction of an error requiring Year 1 financial statements to be restated. as an accounting change requiring Year 1 financial statements to be restated in Year 2 income from continuing operations. as an eccounting change, net of tax, below Year 2 income from continuing operations