Mitch is currently considering investing in municipal bonds that earn 8.40 percent interest, or in taxablebonds issued by the coca cola company that pay 11.2 percent. Question 1. At what tax rate would he be indifferent between the bonds? Marla's employer pays year end bonuses each year on December 31. Marla, a cash basis taxpayer, would prefer to not pay tax on his bonus this year. So,she leaves town on December 31,2014 and doesn't pick up her check until January 2nd , 2015. When should Marla report his bonus? a. 2015, b. 2014. c. Marla can choose the year to report the income d. It does not matter e. None of these.