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Palmer co. had a deferred tax liability balance due to a temporary difference at the beginning of 2014 related to $900,000 of excess depreciation. in december of 2014, a new income tax act is signed into law that lowers the corporate rate from 40% to 35%, effective january 1, 2016. if taxable amounts related to the temporary difference are scheduled to be reversed by $450,000 for both 2015 and 2016, palmer should increase or decrease deferred tax liability by what amount?
a. decrease by $45,000
b. decrease by $22,500
c. increase by $22,500
d. increase by $45,000
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