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:

Pleiotropy

A genetic phenomenon where a single gene influences multiple phenotypic traits.

Polygenic Inheritance

A mode of inheritance where traits are influenced by multiple genes at different loci, leading to a continuous range of possible phenotypes.

Incomplete Dominance

A genetic scenario in which one allele does not completely dominate another allele, leading to a phenotype that is a blend of the two alleles.

Codominance

A genetic scenario where two alleles of a gene are expressed equally in the phenotype of heterozygotes.