When a Firm Changes Only the Estimated Residual Value of Equipment

When a firm changes only the estimated residual value of equipment:

A) Depreciation must be recomputed for each previous year based on the new residual value.
B) The remaining book value, reduced by the new residual value, is the basis for subsequent depreciation.
C) The original cost, reduced by the new residual value, is the basis for subsequent depreciation.
D) No adjustment is needed.