Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprletorship. In late December, he performed $34,000 of legal services for a cllent. Hank typically requires his clients to pay his bills Immedlately upon recelpt. Assume his marginal tax rate is 32 percent this year and will be 35 percent next year, and that he can earn an after-tax rate of return of 12 percent on his Investments. Use Exhlblt 3.1. Required: a. What is the after-tax income if Hank sends his client the bill in December? b. What is the after-tax Income If Hank sends his client the bill In January? Note: Do not round Intermedlate calculations. Round your answer to the nearest whole dollar amount. c. Should Hank send his client the bill In December or January? d. What is the after-tax Income if Hank expects his marginal tax rate to be 24 percent next year and sends his client the bill In January? Note: Do not round Intermedlate calculations. Round your answer to the nearest whole dollar amount. e. Should Hank send his client the bill In December or January if he expects his marginal tax rate to be 32 percent this year and 24 percent next year? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the after-tax income if Hank expects his marginal tax rate to be 24 percent next year and sends his client the bill in January? \begin{tabular}{|l|c|c|c|c|c|c|c|c|c|} \hline & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% \\ \hline Year 1 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.901 & 0.893 \\ \hline Year 2 & 0.925 & 0.907 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 & 0.812 & 0.797 \\ \hline Year 3 & 0.889 & 0.864 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 & 0.731 & 0.712 \\ \hline Year 4 & 0.855 & 0.823 & 0.792 & 0.763 & 0.735 & 0.708 & 0.683 & 0.659 & 0.636 \\ \hline Year 5 & 0.822 & 0.784 & 0.747 & 0.713 & 0.681 & 0.650 & 0.621 & 0.593 & 0.567 \\ \hline Year 6 & 0.790 & 0.746 & 0.705 & 0.666 & 0.630 & 0.596 & 0.564 & 0.535 & 0.507 \\ \hline Year 7 & 0.760 & 0.711 & 0.665 & 0.623 & 0.583 & 0.547 & 0.513 & 0.482 & 0.452 \\ \hline Year 8 & 0.731 & 0.677 & 0.627 & 0.582 & 0.540 & 0.502 & 0.467 & 0.434 & 0.404 \\ \hline Year 9 & 0.703 & 0.645 & 0.592 & 0.544 & 0.500 & 0.460 & 0.424 & 0.391 & 0.361 \\ \hline Year 10 & 0.676 & 0.614 & 0.558 & 0.508 & 0.463 & 0.422 & 0.386 & 0.352 & 0.322 \\ \hline Year 11 & 0.650 & 0.585 & 0.527 & 0.475 & 0.429 & 0.388 & 0.350 & 0.317 & 0.287 \\ \hline Year 12 & 0.625 & 0.557 & 0.497 & 0.444 & 0.397 & 0.356 & 0.319 & 0.286 & 0.257 \\ \hline Year 13 & 0.601 & 0.530 & 0.469 & 0.415 & 0.368 & 0.326 & 0.290 & 0.258 & 0.229 \\ \hline Year 14 & 0.577 & 0.505 & 0.442 & 0.388 & 0.340 & 0.299 & 0.263 & 0.232 & 0.205 \\ \hline Year 15 & 0.555 & 0.481 & 0.417 & 0.362 & 0.315 & 0.275 & 0.239 & 0.209 & 0.183 \\ \hline \end{tabular}