Each year, Tom and Cindy Bates normally have itemized deductions of $10,000, including a $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2013, they pay their pledge for 2012; during 2013, they pay the pledge for 2013; and in late December 2013, they prepay their pledge for 2014.

a. Explain what the Bateses are trying to accomplish.

b. What will be the tax saving if their marginal tax bracket is 25% for all three years? (Assume that the standard deduction amounts for 2013 and 2014 are the same.)

c. Write a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) summarizing your analysis.