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 2015, they pay their pledge for 2014; during 2015, they pay the pledge for 2015; and in late December 2015, they prepay their pledge for 2016.

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 2015 and 2016 are the same.)

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