Marcy, age 30 and single, owns a successful medical practice that is organized as a sole proprietorship. The medical practice is a cash-basis taxpayer. In December of 2021, Marcy's practice owes a $20,000 business expense that can either be paid and deducted in either 2021 or 2022. In 2021, Marcy's marginal tax rate is 32% and she does not anticipate that her marginal tax rate will change in 2022. The applicable interest rate for the time value of money is 5%. 4 In which year should Marcy's business deduct the expense? By deducting the expense in [year], Marcy's tax savings are

Marcy, age 30 and single, owns a successful medical practice that is organized as a sole proprietorship. The medical practice is a cash-basis taxpayer. In December of 2021, Marcy's practice owes a $20,000 business expense that can either be paid and deducted in either 2021 or 2022 . In 2021, Marcy's marginal tax rate is 32% and she does not anticipate that her marginal tax rate will change in 2022 . The applicable interest rate for the time value of money is 5%. In which year should Marcy's business deduct the expense? By deducting the expense in [year]. Marcy's tax savings are