2 Income Statement. Use the corporate tax rate table from Question 6 a Calculate Taxes (state and federal combined) and Net Income and fill in the blanks on the Income Statement. INCOME STATEMENT Sales Cost of Goods Sold Gross Margin 2012 9,365,000 5,521.000 3,844,000 Depreciation Other Selling, Gen. & Admin. Earnings before interest and taxes 355,000 1.010,000 2,479,000 Interest expense Income before taxes 189,000 2,290,000 Taxes Net income b. Calculate the average tax rate: c. Assume that the company invests in a project that increases Income Before Taxes by $1,150,000 i. Calculate the additional amount of taxes that need to be paid. ii. State the marginal tax rate on the additional $1,150,000 of Income Before Taxes. 3 21% of federal taxable income Federal tax rate Maine corporate tax rate: Greater than $0 $350,000 $1,050,000 $3,500,000 or more But not over The gross tax is: $350,000 3.5% of federal taxable income $1,050,000 $12,250 plus 7.93% of the excess over $350,000 $3,500,000 $67,760 plus 8.33% of the excess over $1,050,000 $271,845 plus 8.93% of the excess over $3,500,000 7