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 in the text.
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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The Answer of 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 in the text.
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.

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