Lynn Construction Company had a gross income of $34,000,000 in tax‐year 1, $5,000,000 in salaries, $4,000,000 in wages, $1,000,000 in depreciation expenses, a loan principal payment of $200,000, and a loan interest payment of $210,000.
(a) What is the marginal tax rate for Lynn Construction in tax‐year 1?
(b) What is the average tax rate in tax‐year 1?
(c) Determine the net income of the company in tax‐year 1.