Which of the following situations will require the retained earnings for the prior year to be restated in the current year$$s financial statements $($retrospective adjustment$)?$

Assume amounts are material.

A change in accounting policy related to the method used for inventory valuation

A change in the estimated useful life of buildings included in property, plant and equipment

Inventory valuation adjusted due to a change in the estimated value of damaged inventory

An arithmetic error in a prior year$$which resulted in understatement of an item of operating expenses

$2$ and $3$only

$1$ and $3$only

$1,2$ and $4$ only

All of the above

$1$ and $4$only