Assume a Corporation Is Not Required to Pay AMT in the Current

Assume a corporation is not required to pay AMT in the current year but will pay AMT next year. Also assume the corporation's regular marginal tax rate is 35%. Which tax planning strategy would minimize its after-tax cost of a charitable contribution it is considering paying to a qualified charity?

A) Pay the contribution this year.
B) Wait until next year to pay the contribution.
C) The after-tax cost of the contribution will be the same no matter which year it makes the contribution.
D) None of thesE.The marginal tax rate is higher in the current year (35%) than it will be next year (20%) .Consequently, the after-tax cost of the contribution will be lower if the contribution is made in the current year.