The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 years on a straight-line basis, but Congress then passed a provision that requires the company to depreciate the equipment on a straight-line basis over 7 years. Other things held constant, which of the following will occur as a result of this Congressional action? Assume that the company uses the same depreciation method for tax and stockholder reporting purposes.

A. LeMond's cash position will decrease.

B. LeMond's net fixed assets as shown on the balance sheet will be lower at the end of the year.

C. LeMond's tax liability for the year will be lower.

D. LeMond's reported net income after taxes for the year will be lower.

E. LeMond's taxable income will be lower.