10.9 Buffalo Environmental Service expects to generate a taxable income of $350,000 from its regular business in 2012. The company is also considering a new venture: cleaning up oil spills made by fishing boats in lakes. This new venture is expected to generate an additional taxable income of $180,000.

(a) Determine the firm's marginal tax rates before and after the venture.

(b) Determine the firm's average tax rates before and after the venture.