In the third step of the revenue recognition process (Determination of the transaction price) a company may need to assess variable considerations, which include price increases, performance bonuses, royalties. What are the methods a company can use:

Spieth Golf Shop had $90,000 of expenses that it reported on its 2016 income statement. For income taxes, $30,000 of those expenses will be deductible each year in 2016, 2017, and 2018. Enacted tax rates as of December 31, 2016 were: 35% for 2016; 35% for 2017; and 21% for 2018. What will be the effect of the change in the statutory tax rate for the Companys financial reports on December 31, 2016?

	A.	The DTL related to the $60,000 temporary difference will incorporate the effect of the change in the statutory tax rate
	B.	The DTA related to the $90,000 temporary difference will incorporate the effect of the change in the statutory tax rate
	C.	The DTA related to the $60,000 temporary difference will incorporate the effect of the change in the statutory tax rate
	D.	There will be no effect