In reviewing the activity in the property, plant, and equipment accounts, the auditor

discovered significant debits in accumulated depreciation. Which of the following

provides the most reasonable explanation for these debits?

An impairment loss was recognized on the company's headquarters building.

A manufacturing facility was retired during the year due to the construction

of a new facility.

Numerous changes to the estimated lives of assets occurred during the year.

A new accountant failed to make a significant depreciation entry for the

prior year.