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. (Round discount factor(s)to three decimal places.)a. Kristi has a 40 percent tax rate and can defer $32,000 of income. Cindy has a 30 percent tax rate and can defer $42,000 of income. b. Kristy has a 30 percent tax rate and a 9 percent after-tax rate of return and can defer $37,000 of income for three years. Cindy has a 40 percent tax rate and an 7 percent after-tax rate of return and can defer $32,000 of income for four years.

Question

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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. (Round discount factor(s)to three decimal places.)a. Kristi has a 40 percent tax rate and can defer $32,000 of income. Cindy has a 30 percent tax rate and can defer $42,000 of income. b. Kristy has a 30 percent tax rate and a 9 percent after-tax rate of return and can defer $37,000 of income for three years. Cindy has a 40 percent tax rate and an 7 percent after-tax rate of return and can defer $32,000 of income for four years.

Based Only on the Information Provided for Each Scenario, Determine