#1 - Change in tax rate Fidelity Properties lots for commercial development. When lots are sold, Fidelity uses accrual accounting for financial reporting purposes but uses the cash method of accounting for tax purposes. In 2020, Fidelity sold lots for $800,000 for which no cash was collected at the time of the sale. 30% of the cash will be collected in 2021 and 70% in 2022. The enacted tax rate was 37.5% at the time of the sale. In 2021, a new tax law was enacted, revising the tax rate from 37.5% to 21% beginning in 2022. Calculate the total amount by which Fidelity should change its deferred tax liability in 2021