Problem $3-41($LO $3-2,$ LO $3-3)($Algo$)$

Manny, a calendar$-$year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $$23,000$ 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?

What is the after$-$tax income if Manny sends his client the bill in January? Use Exhibit $31.$ Note: Round your answer to the nearest whole dollar amount.

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.

Required A

Required B

Required C

What is the after$-$tax income if Manny sends his client the bill in December?