[单选题]

A company reported deferred tax liabilities of $500,000 and deferred tax assets of $350,000. If tax rates change and the company continues to grow, using the liability method of accounting for deferred taxes will most likely result in:

A.Increased equity if tax rates decrease.

B.Increased equity if tax rates increase.

C.No change in equity because the deferred tax liability is not likely to reverse.

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