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Blue's Company began operations in 2021. At the end of 2025, Blues discovered that amortization expense on its patents had not been recorded in 2023 or 2024. How would this change be reported in Blues 2025 comparative financial statements?

• in the retained earnings statement as an adjustment to the beginning balance of 2025 retained earnings
• in the income statement as an adjustment to 2025 amortization expense
• as a note disclosure with prospective adjustments to amortization expense
• in the retained earnings statement as an adjustment to the beginning balance of 2024 retained earnings