Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions:
Freda Ltd decided to change its accounting for long service leave in order to accrue expense sooner than had been done previously. The effect on provision for employee entitlements as at the end of 2011 was to increase it by $14 000. By the end of 2009, the liability would go up by $21 000. The company’s income tax rate is 35%.
-What would be the effect of the change on 2012 net profit?

A) It would be $13 650 higher.
B) It would be $13 650 lower.
C) It would be $21 000 higher.
D) It would be $21 000 lower.