At the end of 2020, Promo Inc. has one temporary difference of $135,000 due to a GAAP accrual for a warranty contingency with a tax basis of zero. Any resulting deferred tax amounts are based on a current 2020 tax rate of 35%. However, on December 30, 2020, a new tax rate of 20% was enacted into law, effective for the following year and beyond.

After taking into account the change in the enacted tax rate:

	A.	Income tax expense will increase by $18,750 in 2020.
	B.	Income tax expense will decrease by $18,750 on January 1, 2021.
	C.	Income tax expense will increase by $20,250 in 2020.
	D.	Income tax expense will decrease by $20,250 on January 1, 2021