Question: Question 5 ( 1 point ) Saved Palmer Co . had a deferred tax liability balance due to a temporary difference at the beginning of

Question 5(1 point)
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Palmer Co. had a deferred tax liability balance due to a temporary difference at the beginning of 2024 related to $1,500,000 of excess depreciation. In December of 2024, a new income tax act is signed into law that lowers the corporate rate from 30% to 25%, effective January 1,2026. If taxable amounts related to the temporary difference are scheduled to be reversed by $750,000 for both 2025 and 2026, Palmer should increase or decrease deferred tax liability by what amount?
increase by $37,500
increase by $75,000
decrease by $75,000
decrease by $37,500
Question 5 ( 1 point ) Saved Palmer Co . had a

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