On 1 November 2021, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2021) Montgomery Limited had the following tax balances: Deferred tax assets $33 500 Deferred tax liabilities $18 000 What is the impact of the tax rate change on income tax expense?

a.

Decrease $2 583.

b.

Increase $2 214.

c.

Increase $2 583.

d.

Decrease $2 214.