Based Only on the Information Provided for Each Scenario,determine Whether

question 113

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 3 decimal places.)
 
a.Kristi has a 40% tax rate and can defer $20,000 of income.Cindy has a 30% tax rate and can defer $30,000 of income.
b.Kristy has a 30% tax rate,a 10% after-tax rate of return,and can defer $25,000 of income for three years.Cindy has a 40% tax rate,an 8% after-tax rate of return,and can defer $20,000 of income for four years.

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Definitions:

Quantitative Researchers

Scientists who specialize in the study of phenomena via numerical data and statistical analysis.

Surveys And Questionnaires

Research tools used for collecting data from a predefined group of respondents to gain information and insights on various topics of interest.

Data Collection

The process of gathering and measuring information on targeted variables in an established systematic fashion, enabling one to answer relevant questions and evaluate outcomes.

Gender Insensitivity

A disregard or lack of awareness towards the different identities, roles, and needs of various genders.