Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $12,000 bill from her accountant for consulting services related to her small business. Reese can pay the $12.000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 6 percent on her investments. Required: a. What is the after-tax cost if she pays the $12,000 bill in December? b. What is the after-tax cost if she pays the $12.000 bill in January? Use Exhibit 3.1 Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Reese pay the $12.000 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 cost if she pays the $12,000 bill in December? After-tax cost Required A Required B > Year 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 .962 .952 943 935 .926 .917 909 .901 .893 2 .925 .907 .890 .873 .857 .842 .826 .812 .797 3 .889 .864 .840 .816 .794 .772 .751 .731 .712 4 .855 .823 .792 .763 .735 .708 .683 .659 .636 5 822 .784 .747 .713 .681 .650 .621 .593 .567 6 .790 .746 .705 .666 .630 .596 .564 .535 507 7 .760 .711 .665 .623 .583 .547 .513 482 .452 8 .731 .677 .627 .582 .540 .502 .467 .434 .404 9 .703 .645 .592 .544 .500 .460 .424 .391 .361 10 .676 .614 .558 .508 .463 .422 .386 .352 .322 11 .650 585 .527 .475 .429 .388 .350 .317 .287 12 .625 557 .497 .444 397 .356 .319 .286 .257 13 .601 .530 .469 .415 .368 .326 290 .258 .229 15 14 .577 505 .442 388 .340 .299 .263 232 205 15 .555 481 417 362 .315 275 239 .209 .183 13