Which of the Following Statements Is Correct

Which of the following statements is correct?

A) An error affecting prior year's depreciation is treated as a change in estimate.
B) A change in estimated useful life for a building should cause a correction to prior years' retained earnings.
C) A change in method of accounting for depreciation should cause an adjustment to current year's depreciation expense and a cumulative effect for the effect of the change on prior year's earnings.
D) A cumulative effect will never be accompanied by a related tax effect

Correct Answer:

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