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4. Misty will graduate from OU with a degree in accounting in May. She plans to take the Becker FASTPASS CPA review course during the summer and take the CPA in the latter part of the summer and early fall. Her hope is to pass each part of the CPA the first time she takes them and complete before the end of this year. She will start work on September 1 at Daloit. If she passes the CPA before the end of the current year, Daloit will award her a $6,000 cash bonus. If she passes the CPA next year, Daloit will pay her a $5,000 cash bonus. After next year, the bonus is zero. Because she took the undergraduate tax classes at OU, she knows that she needs to consider the after-tax bonus that she gets to keep rather than focus on the before tax bonus paid by her employer. However, because it has now been a year and a half since she took the class, she needs your help in making these computations. Specifically, she wants to know how much more after-tax cash flow she will keep if she earns a $6,000 bonus this year when working only a partial year, versus only a $5,000 bonus next year when she works a full year (the bonus is zero after that). Her starting pay is $60,000 per year. She will file as a single taxpayer taking the standard deduction both this year and next year. Misty has no other income or deductions. You can assume that Misty will receive a 10% raise effective at the beginning of next year. In addition, use the 2022 single tax rate schedule and standard deduction for both years. Compute the net, after-tax cost of not passing the CPA in her first sitting. The most straightforward way to approach this is to compute the ATCF from each option and then compare the final results.

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