Problem $1-59($LO $1-4)($Static$)$

Nicole is a calendar$-$year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for about $$12,000$ of her services on the first of each month. The bills are due by the end of the month, and typically $70$ percent of the bills are paid on time and $98$ percent are paid within $60$ days.

a$.$ Suppose that Nicole is expecting a $2$ percent reduction in her marginal tax rate next year. Ignoring the time value of money, estimate the tax savings for Nicole if she postpones mailing the December bills until January $1$ of next year.

Tax savings