4.42

(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 vhich 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 liability. What are the firn's average and marginal tax rates? The Robbins Corporation's tax liability for the year is \$ The firm's average tax rate is % The firm's marginal tax rate is %