24、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst gathered the following data for four profitable companies operating in the same industry: Company | Deferred Tax Assets | Deferred Tax Liabilities | 1 | $50,000 | $200,000 | 2 | $300,000 | $400,000 | 3 | $85,000 | $50,000 | 4 | $170,000 | $115,000 |
If the applicable corporate income tax rate is decreased and nothing else changes, which company will most likely experience the largest decrease in reported equity? A. Company 1. B. Company 2. C. Company 3. D. Company 4.
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