[单选题]

An analyst gathered the following data for three profitable companies operating in the same industry:
Company   Deferred Tax Assets   Deferred Tax Liabilities
  1       $300,000      $400,000
  2       $85,000       $50,000
  3       $170,000      $115,000
If the applicable income tax rate decreases 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

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