ABC Co. reported a DTA in the amount of $240,000 resulting from an estimated warranty expense accrual for book purposes. The total book-tax difference related to the estimated warranty liability is $600,000. Effective immediately, the enacted statutory tax rate changed from 40% to 35%. What amount, if any, Watson co. should record in its books to adjust for this change in tax rates?

A. $30,000 B.

$240,000 C.

$210,000

D. No adjustment is necessary.