11.18 Marginal and average tax rates. MoCo, Inc., operates in a state where companies face a tax rate of 9 percent on taxable income up to $1,000,000 and 10.5 percent on taxable income above $1,000,000. Assume the federal tax rate is a flat 21 percent and MoCo, Inc., will have taxable income of $1,500,000 for the year. What is the firms average blended federal and state tax rate? What is the firms marginal blended federal and state tax rate? If