The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows ($ thousands):
![](https://test.transtutors.com/qimg/920d05b7-3a2d-4523-806b-43365711951f.png)
A reduction in the statutory tax rate would most likely benefit the company's:
A. income statement and balance sheet.
B. income statement but not the balance sheet.
C. balance sheet but not the income statement.