Reginald Is Thinking About Asking His Employer to Defer a $5000

Multiple Choice

Reginald is thinking about asking his employer to defer a $5000 bonus to next year's income because he would have to pay $2050 in tax if he received it this year.What should he do?

A) If his marginal tax rate next year will be less than 35 percent he should consider deferring it.
B) He should take the bonus now because of the opportunity cost.
C) If his marginal tax rate next year will be less than 45 percent,he should defer it to next year.
D) If his marginal tax rate next year will be less than 41 percent,he should defer it to next year.