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Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $43,000 of legal services for a

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Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $43,000 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 8 percent on his investments Required: a. What is the after-tax income if Manny sends his client the bill in December? b. What is the after-tax income if Manny sends his client the bill in January? Use Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Manny send his client the bill in December or January? Complete this question by entering your answers in the tabs below. What is the after-tax income if Manny sends his client the ball in December? EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $43,000 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 8 percent on his investments Required: a. What is the after-tax income if Manny sends his client the bill in December? b. What is the after-tax income if Manny sends his client the bill in January? Use Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Manny send his client the bill in December or January? Complete this question by entering your answers in the tabs below. What is the after-tax income if Manny sends his client the ball in December? EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of

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