Inky Inc. reported the following financial information in 2015.

Operating income (EBIT)............................................ $650,000

Interest.................................................................. $430,000

Dividends from Printers Inc. not included in operating income (Inky owns 3% of Printers) ................................................................. $20,000

Dividends paid to Inky's stockholders ............................ $50,000

a. What is Inky's tax liability? (Use the corporate tax schedule on page XX.)

b. What is Inky's marginal tax rate?

c. What is Inky's average tax rate?

d. Explain why only one of the rates in b and c is relevant for financial decisions?