Isabel, a calendar$-$year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $$38,000$ bill from her accountant for consulting services related to her small business. Isabel can pay the $$38,000$ bill anytime before January $30$ of next year without penalty. Assume her marginal tax rate is $37$ percent this year and next year, and that she can earn an after$-$tax rate of return of $12$ percent on her investments.

Required:

a$.$ What is the after$-$tax cost if Isabel pays the $$38,000$ bill in December?

b$.$ What is the after$-$tax cost if Isabel pays the $$38,000$ bill in January? Use Exhibit $31.$

Note: Round your answer to the nearest whole dollar amount.

c$.$ Based on requirements a and b$,$ should isabel pay the $$38,000$ bill in December or January?

Complete this question by entering your answers in the tabs below.

What is the after$-$tax cost if Isabel pays the $$38,000$ bill in December?

After$-$tex cost