Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $37,000 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 11 percent on his investments. a. What is the after-tax income if Manny sends his client the bill in December? Answer is complete and correct. After-tax income $ 23,310 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.) Answer is not complete. After-tax income EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return Year 1 2 3 4% 9 62 925 889 .855 822 790 760 .731 703 .676 650 .625 .601 .577 555 5 6 7 5% 952 907 564 923 784 746 711 .677 645 614 585 557 530 .505 481 6% 943 890 840 792 747 705 665 627 592 558 527 4 97 469 442 417 7% 935 873 816 763 713 .666 623 552 544 508 475 444 415 388 362 8% 926 $57 794 735 681 630 583 540 500 463 429 397 368 340 315 9% 917 5 42 772 708 650 596 547 502 460 422 388 356 326 299 275 10% 909 826 751 683 621 564 513 467 424 386 350 319 290 263 239 11% 901 812 731 659 593 535 482 434 391 352 .317 286 258 232 209 12% 893 797 712 .636 567 507 452 404 361 .322 11 12 13 14 15 287 257 229 205 183