Chapter 3 Homework Assignment 1 Check my work 4 Problem 3-41 (LO 3-2, LO 3-3) (Algo) 1 nts Manny, a calendar year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $16,000 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 eBook .. What is the after-tax income if Manny sends his client the bill in December? Print Terences After-tax income 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