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Manny, a calendar - year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $ 3 8 ,
Manny, a calendaryear taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $ of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Mannys marginal tax rate is percent this year and next year, and that he can earn an aftertax rate of return of percent on his investments. What is the aftertax income if Manny sends his client the bill in January? Use Exhibit Note: Round your answer to the nearest whole dollar amount.EXHIBIT Present Value of a Single Payment at Various Annual Rates of Return
Manny, a calendaryear taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $ of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Mannys marginal tax rate is percent this year and next year, and that he can earn an aftertax rate of return of percent on his investments.
What is the aftertax income if Manny sends his client the bill in January? Use Exhibit
Note: Round your answer to the nearest whole dollar amount.EXHIBIT Present Value of a Single Payment at Various Annual Rates of
Return
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