In 2007, PepsiCo experienced an increase in its deferred tax liability (DTL) related to Property, plant and equipment (PP&E). Would the following financial reporting and investment decisions have caused PepsiCos DTL related to PP&E to increase, decrease, or remain unchanged? These decisions have no effect on taxable income. (Please circle one.)

a. Shortened the estimated useful life of some of its PP&E at the beginning of 2007.

Increase DTL

Decrease DTL

No change

Insufficient Information

b. Increased the residual value of some of its PP&E at the beginning of 2007.

Increase DTL

Decrease DTL

No change

Insufficient Information

c. Sold PP&E during 2007 that had been 100% depreciated for tax purposes but only 85% depreciated for financial reporting purposes.

Increase DTL

Decrease DTL

No change

Insufficient Information

d. Acquired new PP&E that resulted in depreciation for tax purposes in excess of depreciation for financial reporting purposes in 2007.

Increase DTL

Decrease DTL

No change

Insufficient Information