Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In...
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Isabel, a calendaryear taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $ bill from her accountant for consulting services related to her small business. Isabel can pay the $ bill anytime before January of next year without penalty. Assume her marginal tax rate is percent this year and next year, and that she can earn an aftertax rate of return of percent on her investments.
Isabel, a calendaryear taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $ bill from her accountant for consulting services related to her small business. Isabel can pay the $ bill anytime before January of next year without penalty. Assume her marginal tax rate is percent this year and next year, and that she can earn an aftertax rate of return of percent on her investments.
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