Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business, Isabel can pay the $20,000 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 a. What is the after-tax cost if Isabel pays the $20,000 bill in December? After-tax cost b. What is the after-tax cost if Isabel pays the $20,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) es After-tax cost c. Based on requirements a and b, should Isabel pay the $20,000 bill in December or January? O December January 2 Isabel, a calendar year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $36,000 bill from her accountant for consulting services related to her small business, Isabel can pay the $36,000 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 10 percent on her investments a. What is the after-tax cost if Isabel pays the $36,000 bil in December? 0.66 points 800 Atarix oos Hin b. What is the after-tax cost Isabel pays the $36,000 bill in January? Use Exhibit 31 (Round your answer to the nearest whole dollar amount) References c. Based on requirements and should Isabel pay the $36.000 bill in December of January? December January Check my work Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In lote December he performed $39,000 of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Manny's marginal tax rate is 37 percent this year and next year, and that he can earn an after-tax rate of return of 4 percent on his Investments a. What is the after-tax income if Manny sends his client the bill in December? After tnx income b. What is the after-tax income If Manny sends his client the bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) Ahor tax income c. Based on requirements a and b, should Manny send his client the bill in December or January? O December January