On January 2, 2021, Tobias Company began using straight-line depreciation for a certain class of assets. In the past, the company had used double-declining-balance depreciation for these assets. As of January 2, 2021, the amount of the change in accumulated depreciation is $45,000. The appropriate tax rate is 25%. The separately reported change in 2021 earnings is:

Multiple Choice

• An increase of $45,000.

• A decrease of $45,000.

• An increase of $33,750.

• None of these answer choices are correct.