For Year 1, Pathorn Co, estimated its two-year equlpment 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 Yeac 1 financial statements to be restated. as an accounting change requiring Year 1 financial statements to be reatated. as an accounting change, net of tax, beiow Year 2 income from continuing operations. in Year 2 income from continuing operations