Problem 3-40 (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 $38,000 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 12 percent on his investments. a. What is the after-tax income if Manny sends his client the bill in December? After-tax income ces b. What is the after-tax income if Manny sends his client the bill in January? Use Exhibit 31. (Round your answer to the nearest whole dollar amount.) After-tax income - searan renamente sulh cho Mannu cand le pliant the hill in Paramhara annan? 2 After-tax income Skipped eBook Hint b. What is the after-tax income if Manny sends his client the bill in January? Use Exhibit 31. (Round y dollar amount.) Ask Print After-tax income References c. Based on requirements a and b, should Manny send his client the bill in December or January? December January Mc Grow Hill