Each year the hundleys normally report itemized deductions, Ask an Expert

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Each year, the Hundleys normally report itemized deductions of $10,000, including a $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2012, they pay their pledge for 2011; during 2012, they pay the pledge for 2012; and in late December 2012, they prepay their pledge for 2013.

a. describe what the Hundleys are trying to accomplish.

b. What will be the tax saving if their marginal tax bracket is 25% for all three years? (Assume that the standard deduction amounts for 2012 and 2013 are the same.)

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M949314

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