Acompany made an error in calculating and reporting amortization expense in 2015. the error was discovered in 2016. the item should be reported as a prior period adjustment:

The item should be reported as a prior period adjustment: On the 2014 statement of retained earnings. 

To add, depreciation is the process by which a company allocates an asset's cost over the duration of its useful life. Every time a company prepares its economic statements, it records a depreciation expense to allocate a portion of the cost of the buildings, machines or equipment it has purchased to the current fiscal year.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy