24. Thx Rates (L03) Refer to the corporate marginal tax rate information in Table 23. n. Why do you think the marginal tax rate jumps up from 34 percent to 39 percent at a taxable income of $100,001, and then falls back to a 34 percent marginal rate at a taxable income of $335.001? 1. Compute the average tax rate for a corporation with exactly $335,001 in taxable income. Does this confirm your explanation in port(a)? What is the average tax rate for a corporation with exactly $18,333,334? Is the same thing happening here? The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from 335.000 to 3000. What would the new 39 percent bubble rate have to be Use the following information for Thco Swell, Inc. for Problems 25 and 26 (assume the tax rate is 34 percent) Visit us at www.mhhe.com/rwj 2008 $7.233 1.000 2:47 Depreciation Cost of goods sold Other Interest 2000 $5.00 1,005 2.00 515 070 2011 485 1792 Accounts receive torta Londo 732 NA 11.00 24. Tax Rates [LO3] Refer to the corporate marginal tax rate information in Table 2.3. a. Why do you think the marginal tax rate jumps up from 34 percent to 39 percent at a taxable income of $100,001, and then falls back to a 34 percent marginal rate at a taxable income of $335,001? b. Compute the average tax rate for a corporation with exactly $335,001 in taxable income. Does this confirm your explanation in part (a)? What is the average tax rate for a corporation with exactly $18,333,334? Is the same thing happening here? c. The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $200,000. What would the new 39 percent bubble rate have to be? Use the following information for Taco Swell, Inc., for Problems 25 and 26 (assume the tax rate is 34 percent): 2008 $ 7.233 1,038 2,487 2009 $ 8,085 1.085 2.942 591 515 579 485 Sales Depreciation Cost of goods sold Other expenses Interesi Cash Accounts receivable Short-term notes payable Long-term debt Net fixed assets Accounts payable Inventory Dividends 3,792 5,021 4,041 5,892 732 717 15,435 33.921 12.700 31,805 3,984 8,927 882 4,025 9.555 1.011 24. Thx Rates (L03) Refer to the corporate marginal tax rate information in Table 23. n. Why do you think the marginal tax rate jumps up from 34 percent to 39 percent at a taxable income of $100,001, and then falls back to a 34 percent marginal rate at a taxable income of $335.001? 1. Compute the average tax rate for a corporation with exactly $335,001 in taxable income. Does this confirm your explanation in port(a)? What is the average tax rate for a corporation with exactly $18,333,334? Is the same thing happening here? The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from 335.000 to 3000. What would the new 39 percent bubble rate have to be Use the following information for Thco Swell, Inc. for Problems 25 and 26 (assume the tax rate is 34 percent) Visit us at www.mhhe.com/rwj 2008 $7.233 1.000 2:47 Depreciation Cost of goods sold Other Interest 2000 $5.00 1,005 2.00 515 070 2011 485 1792 Accounts receive torta Londo 732 NA 11.00 24. Tax Rates [LO3] Refer to the corporate marginal tax rate information in Table 2.3. a. Why do you think the marginal tax rate jumps up from 34 percent to 39 percent at a taxable income of $100,001, and then falls back to a 34 percent marginal rate at a taxable income of $335,001? b. Compute the average tax rate for a corporation with exactly $335,001 in taxable income. Does this confirm your explanation in part (a)? What is the average tax rate for a corporation with exactly $18,333,334? Is the same thing happening here? c. The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $200,000. What would the new 39 percent bubble rate have to be? Use the following information for Taco Swell, Inc., for Problems 25 and 26 (assume the tax rate is 34 percent): 2008 $ 7.233 1,038 2,487 2009 $ 8,085 1.085 2.942 591 515 579 485 Sales Depreciation Cost of goods sold Other expenses Interesi Cash Accounts receivable Short-term notes payable Long-term debt Net fixed assets Accounts payable Inventory Dividends 3,792 5,021 4,041 5,892 732 717 15,435 33.921 12.700 31,805 3,984 8,927 882 4,025 9.555 1.011