At December 31,2012 Raymond Corporation reported a deferred tax liability of $150,000 which was attributable to a taxable type temporary difference of $500,000. The temporary difference is scheduled to reverse in 2016. During 2013, a new tax law increased the corporate tax rate from 30% to 40%. Raymond should record this change by debiting:
1) Retained Earning for $50,000
2) Retained Earnings for $15,000
3) Income Tax Expense for $15,000
4) Income Tax Expense for$50,000