Question 2 - Tax Suppose Congress is expected to increase the corporate tax rate from 21% to 35% next year. Holliday Corp. is scheduled to pay its regional managers, who are not covered employees, a salary of $1 million in the current period. The managers' tax rates are 37%. Holliday is considering offering to reduce each manager's salary by $300,000 in the current period and instead pay each manager $330,000 in the next period. Holliday's after-tax rate of return is 10%. If Holliday does this: Part A: Assuming (1) this occurs in the post-TCJA period and (2) Holliday plans on paying the regional managers a $1 million salary in year 2 (i.e., the next year), deferring salary from the current period to the next period will not increase tax savings resulting from the deductibility of the regional manager's compensation. [Select ]