The 2013 annual report of Dow Chemical Company disclosed a valuation allowance of $1,112 million related to various deferred tax assets. The 2012 valuation allowance had a balance of $1,399 million.

What effect did this decrease in the allowance have on Dow Chemicals net income in 2013?

A) Decrease net income by $287 million

B) Increase net income by $287 million

C) Increase net income by $1,112 million

D) Decrease net income by $1,112 million

E) None of the above