Lucy Gray Baird, a cash-basis taxpayer, owes $19,000 in tax-deductible accounting fees for her business. Assume that it is December 28th and that Lucy Gray Baird can avoid any finance charges if she pays the accounting fees by January 10th. Lucy Gray Baird's tax rate this year is 32%. Her tax rate next year will be 24%. Her after-tax rate of return is 7%. (1) When should Lucy Gray Baird pay the $19,000 fees and (2) how much can she save in tax? Round discount factor(s) to three decimal places.

A. (1) Next year, January; (2) $1,816 tax saving.

B. (1) Next year, January; (2) $1,125 tax saving.

C. (1) This year, December; (2) $1,816 tax saving.

D. (1) This year, December; (2) $1,125 tax saving.