Ryner Ltd sold an item of plant to its subsidiary Soros Ltd on 1 January 2021 for $50 000. The asset had cost Ryner Ltd $60 000 when acquired on 1 January 2019. At that time, the remaining useful life of the plant was assessed at 5 years. The adjustment necessary on consolidation to reflect the tax effect of the depreciation adjustment for the year ended 30 June 2021 will result in:

Group of answer choices

a decrease in deferred tax assets and an increase in income tax expense

a decrease in income tax expense and an increase in deferred tax assets

an increase in income tax expense and an increase in deferred tax liabilities

a decrease in deferred tax assets and a decrease in income tax expense