The Taxpayer's Marginal Federal and State Tax Rate Is 25

The taxpayer's marginal federal and state tax rate is 25%.Which would the taxpayer prefer?

A) $1.00 taxable income rather than $1.25 tax-exempt income.
B) $1.00 taxable income rather than $.75 tax-exempt income.
C) $1.25 taxable income rather than $1.00 tax-exempt income.
D) $1.40 taxable income rather than $1.00 tax-exempt income.
E) None of these.