Final answer:
A prior period adjustment is an accounting correction for errors or omissions from a previous reporting period. The error in the computation of depreciation expense in the preceding year would appear as a prior period adjustment.
Step-by-step explanation:
A prior period adjustment is an accounting correction made to the financial statements of a company for errors or omissions from a previous reporting period. It is typically disclosed separately in the financial statements and can have a significant impact on the reported financial results. Out of the options given, the error in the computation of depreciation expense in the preceding year would appear as a prior period adjustment.