Firm C purchases a depreciable asset with a cost of $2,000, a five-year useful life, and the salvage value of $0. For financial reporting purposes, it depreciates the asset using the straight-line method. For tax reporting, it depreciates the asset using the double-declining-balance method. The firms income before depreciation is $4,000, and the tax rate is 35%. Which of the following does not incur in Year 1? Choose all that apply.

$140 decrease in deferred tax liability

$800 decrease in cash

$800 decrease in retained earnings

$800 increase in tax expense