Assume the following: 2007 2006 Deferred tax assets $16,500 $14,500 Valuation allowance (1,000) (2,000) Net deferred tax assets $15,500 $12,500 Net deferred tax liabilities ($17,000) ($25,000) A reduction in the statutory rate would most likely benefit: income statement and balance sheet income statement but not the balance sheet O balance sheet but not the income statement