Reginald Is Thinking About Asking His Employer to Defer a $5000

question 86

Multiple Choice

Reginald is thinking about asking his employer to defer a $5000 bonus to next year's income because he would have to pay $2050 in tax if he received it this year.What should he do?

• A)If his marginal tax rate next year will be less than 35 percent he should consider deferring it.
• B)He should take the bonus now because of the opportunity cost.
• C)If his marginal tax rate next year will be less than 45 percent,he should defer it to next year.
• D)If his marginal tax rate next year will be less than 41 percent,he should defer it to next year.

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