Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $37,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $37,000 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 11 percent on her investments. Required: a. What is the after-tax cost if Isabel pays the $37,000 bill in December? b. What is the after-tax cost if Isabel pays the $37,000 bill in January? Use Exhibit 3.1 Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Isabel pay the $37,000 bill in December or January? Complete this question by entering your answers in the tabs below. Required A Required B Required C What Required A cost if Isabel pays the $37,000 bill in December? After-tax cost Required A Required B > Year 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 1 962 952 943 935 926 917 .909 .901 .893 2 925 .907 .890 .873 .857 .842 .826 .812 .797 3 .889 .864 .840 .816 .794 .772 .751 .731 .712 4 .855 .823 .792 .763 .735 .708 .683 .659 .636 5 822 784 .747 .713 .681 .650 .621 .593 567 6 .790 .746 .705 .666 .630 .596 .564 .535 .507 7 .760 .711 .665 623 .583 .547 .513 .482 .452 W 8 .731 .677 .627 .582 .540 .502 .467 .434 404 9 .703 .645 .592 544 .500 .460 .424 .391 .361 10 10 .676 .614 .558 508 .463 .422 .386 .352 .322 11 .650 585 527 475 .429 .388 350 .317 .287 12 .625 .557 .497 444 .397 .356 .319 286 .257 13 .601 .530 469 .415 .368 .326 290 .258 .229 14 .577 .505 442 388 .340 .299 263 232 .205 15 .555 481 .417 .362 .315 275 239 .209 .183