E. Initially, when revenues are recognized and assets are depreciated, deferred tax liabilities increase. Accelerated depreciation leads to higher tax deductions, resulting in a larger deferred tax liability due to the variance between tax and book depreciation. As assets age, the depreciation method transitions to straight-line, uniformly reducing the asset value until it reaches salvage value. This change triggers a reversal of deferred tax liabilities. The reduction in Walmart's deferred tax liability may stem from fewer property, plant, and equipment (PPE) acquisitions or PPE sales in the current year, boosting book depreciation and reducing tax depreciation