Each of the following individual taxpayers is planning on making a deductible $500 payment (e.g., a fully deductible charitable contribution) either in December 20X1 or in January 20X2.Assume the standard deduction for both years for joint filers is $10,000 and for single filers is $4,000.Ignore the time value of money. Assuming that between years there are no changes in tax rates and other items (e.g., standard deduction, personal exemption, etc.) and ignoring the time value of money, who would gain the greatest tax savings by making the payment in 20X2 instead of 20X1?
A)Abe
B)Ben
C)Cathy
D)Diane
E)Earl

Question

Each of the following individual taxpayers is planning on making a deductible $500 payment (e.g., a fully deductible charitable contribution) either in December 20X1 or in January 20X2.Assume the standard deduction for both years for joint filers is $10,000 and for single filers is $4,000.Ignore the time value of money.  Assuming that between years there are no changes in tax rates and other items (e.g., standard deduction, personal exemption, etc.) and ignoring the time value of money, who would gain the greatest tax savings by making the payment in 20X2 instead of 20X1?
A)Abe 
B)Ben 
C)Cathy 
D)Diane 
E)Earl

Quizplus · Accepted Answer

The Answer of Each of the following individual taxpayers is planning on making a deductible $500 payment (e.g., a fully deductible charitable contribution) either in December 20X1 or in January 20X2.Assume the standard deduction for both years for joint filers is $10,000 and for single filers is $4,000.Ignore the time value of money.  Assuming that between years there are no changes in tax rates and other items (e.g., standard deduction, personal exemption, etc.) and ignoring the time value of money, who would gain the greatest tax savings by making the payment in 20X2 instead of 20X1?
A)Abe 
B)Ben 
C)Cathy 
D)Diane 
E)Earl

Each of the Following Individual Taxpayers Is Planning on Making