4.4

The Robbins Corporation's tax liability for the year is $

The firm's average tax rate is %

The firm's marginal tax rate is %

(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.07 million, with the cost of goods sold equal to $650,000. The firm paid interest of $212,000 and its cash operating expenses were $101,000. Also, the firm received $44,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $11,000 in dividends to its stockholders. Depreciation expense was $48,000. Use the corporate tax rates shown in the popup window, to compute the firm's tax iability. What are the firm's average and marginal tax rates? \begin{tabular}{l|l} \hline \multicolumn{1}{l|}{ Taxable Income } & Marginal Tax Rate \\ \hline$0$50,000 & 15% \\ \hline$50,001$75,000 & 25% \\ \hline$75,001$100,000 & 34% \\ \hline$100,001$335,000 & 39% \\ \hline$335,001$10,000,000 & 34% \\ \hline$10,000,001$15,000,000 & 35% \\ \hline$15,000,001$18,333,333 & 38% \\ \hline Over $18,333,333 & 35% \\ \hline \end{tabular}