29. Taxes. Turn back to Table 3-7, which shows marginal personal tax rates. Make a table in Excel that calculates taxes due for income levels ranging from $10,000 to $10 million. (LO4)

a. For each income, calculate the average tax rate of a single taxpayer. Plot the average tax rate as a function of income.

b. What happens to the difference between the average and top marginal tax rates as income becomes very large?

c. Explain why, when analyzing very large firms, we may be content simply treating the corpo- rate tax rate as 35% without worrying about tax brackets at relatively low income levels.