X Company needs to raise $10 million and is considering two options: issue $10 million in common stock January 1, 2021 or $10 million in bonds at an interest rate of 5% on January 1, 2015. Income before Interest and Taxes under either scenario is $2,000,000. The tax rate is 15%. On December 31st, 2021, the difference in Net Income between the two options will be: 1. $150,000. 2. $500,000. 3. $75,000. 4. $425,000 1 O2 3 4