1. ABC Enterprises, Inc., had operating earnings of $270,000 for the year just ended. During the year, the firm sold stock that it held in another company for $170,000, while its original purchase price of $90,000, paid 1 year earlier.
2. What is the amount, if any, of capital gains realized during the year?
3. How much total taxable income did the firm earn during the year?
4. Use the corporate tax rate schedule given above to calculate the firms total taxes due.
5. Calculate both the average tax rate and the marginal tax rate on the basis of your findings.
6. 

Tax calculation (Marginal rate X amount over base bracket) Range of taxable income Base tax + S + X $ 0] + + + 0 to $ 50,000 $ 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 (15% (25 (34 (39 (34 (35 (38 amount over amount over amount over amount over amount over amount over amount over amount over + 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333) + + X + (35