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

Multiple Choice

Real is thinking about asking his employer to defer a $5000 bonus to next year's income because he will have to pay $2050 in tax if he receives it this year. What should he consider before asking his employer to do so?

A) His marginal tax rate now and next year and the opportunity cost of waiting.
B) He should take the bonus now because deferring it would be tax evasion.
C) If his marginable tax rate this year is 45 percent, he should defer it to next year.
D) If his marginal tax rate next year will be 40 percent, he should defer it to next year.