For each of the following scenarios, indicate which of the four basic tax planning variables

$($entity$,$ character, time period, jurisdiction$)$ affects after$-$tax value.

Note that more than one variable may apply to any scenario. Identify all that are relevant.

a Aloha Corp is considering building a new manufacturing facility in either State $U$ or State $P.$

State U has a $10\%$ state income tax rate.

State $P$ has a $15\%$ income tax rate but offers a tax holiday for new business investment

that would exempt up to $$250,000$ of Aloha's earnings from state income tax for the first

five years of operations in State $P.$

b Mary wishes to help her nephew, Gill, pay his college tuition.

Instead of giving Gill cash, Mary gives him bonds earning $$10,000$ annual interest income.

Mary's marginal tax rate is $35\%$ and Gill's marginal tax rate is $12\%.$

c Congress has recently enacted a decrease in corporate tax rates that will take effect at the beginning of next year.

Grant Company, a cash basis tax payer, is planning to pay expenses prior to year$-$end in order to maximize its tax savings in the current year.