CFAI’s online practice questions have the following question:

[question removed by moderator]


Why does the solution calculate ΔDTL by comparing the DTL in 2014 (with the old tax rates) with the DTL in 2014 (with the new lower tax rates)? It seems like it’s assumed that the tax rate in 2014 used to be 30% like in 2013, but then it was changed into 25%. I thought that in 2013 it was 30% and then in 2014 it is 25%, and the change of tax rates happened between 2013 and 2014, not within 2014?

I thought B is correct, and we are supposed to calculate the change in DTL as ΔDTL = Ending DTL balance in 2014 - Ending DTL balance in 2013 = 4,000×0.25 − 2,500 × 0.30 = 250? I hope someone can help me with this. Thanks!