1. 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?