On January 2, 2024, 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, 2024, the amount of the change in accumulated depreciation is $41,500. The appropriate tax rate is 25%. The separately reported change in 2024 earnings is:

Multiple Choice

an increase of $31,125.

a decrease of $41,500.

None of these answer choices are correct.

an increase of $41,500.