A company reports DTA of $300 million and DTL of $200 million on its balance sheet for the year
ended December 2009. Tax rates from 2010 onward are brought down from 40% to 30%. In response to
this change in tax rates, the decrease in the company’s shareholders’ equity is closest to:
A. $25 million.
B. $10 million.
C. $75 million.
Answer is A. Can somebody explain this?