Tax Planning Involves the Timing of Income and Deductions

question 63

Multiple Choice

Tax planning involves the timing of income and deductions. General rules of thumb to follow when planning include
I.deferring recognition of income.
II.putting deductions into the year with highest marginal tax rate.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.