A company had a 50% marginal tax rate last year and showed the following financial and tax reporting information: Deferred tax asset of $1,000 Deferred tax liability of $5,000 Based only on this information and the news that the tax rate will decline to 20%, the company's: deferred tax asset will be reduced by $400 and deferred tax liability will be reduced by $2,000 deferred tax liability will be reduced by $3,000 deferred tax asset will be reduced by $200 and income tax expense will be reduced by $1.000