Based Only on the Information Provided for Each Scenario, Determine

question 119

Essay

Based only on the information provided for each scenario, determine whether Kristi or Cindy will benefit more from using the timing strategy and why there will be a benefit to that person. Use Exhibit 3.1. (Round discount factor(s)to three decimal places.)
a. Kristi has a 40 percent tax rate and can defer $20,000 of income. Cindy has a 30 percent tax rate and can defer $30,000 of income. b. Kristy has a 30 percent tax rate and a 10 percent after-tax rate of return and can defer $25,000 of income for three years. Cindy has a 40 percent tax rate and an 8 percent after-tax rate of return and can defer $20,000 of income for four years..

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Definitions:

Information Overload

The state of being overwhelmed by the vast amount of information available, making it difficult to process or make decisions.

Personal Agenda

An individual’s private motivations, goals, or objectives that drive their behavior and decisions in various contexts.

Listener Apprehension

Fear of misunderstanding, misinterpreting, or being unable to adjust to the spoken messages of others.

Presentation

The act of showing, demonstrating, or delivering information to an audience.