2 pints Manny a calendar year taxpayer uses the cash method of accounting for his sole proprietorship In late December he

Question

2 pints Manny a calendar year taxpayer uses the cash method of accounting for his sole proprietorship In late December he performed 42 000 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 7 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 Exhibit 3 1 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 Required A Required B Answer is complete but not entirely correct Required C What is the after tax income if Manny sends his client the bill in December

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