Mingming and Xavier, Unrelated Single Taxpayers, Have Each Incurred a $1,000

Mingming and Xavier, unrelated single taxpayers, have each incurred a $1,000 expenditure. Before considering this expenditure, Mingming has taxable income of $500,000 and Xavier has taxable income of $32,000. Assume the expenditure qualifies as either a tax deduction or a 25% credit. Which of the following statements is correct?

A) Mingming will prefer the credit, but Xavier will prefer the deduction.
B) Both taxpayers will prefer the deduction.
C) Mingming will prefer the deduction, but Xavier will prefer the credit.
D) Both taxpayers will prefer the credit.