Allen, a single taxpayer in the United States, operates two illegal business operations and has the following items of income and expense. Assume Allen does not have enough itemized deductions to use the itemized deductions for his tax return.Assume that these businesses were treated as Schedule C income.

Income from drug running operation $800,000

Expenses:

Rent 24,000

Utilities 9,000

Bribes to police 55,000

Medical expense 5,000

Legal fees related to business 25,000

Depreciation 30,000

Illegal kickbacks 30,000

Cost of goods sold 300,000

Income cyber hacking operations. $200,000

Expenses:

Rent 4,000

Utilities 3,000

Bribes to police 7,000

Legal fees related to business 8,000

Depreciation 5,000

Illegal kickbacks 10,000

What is Allen's AGI _____________________________________

What is Allen's Taxable Income ____________________________

What is Allen's Tax Liability _______________________________

What is Allen's Effective Tax Rate ___________________________

What is Allen's Marginal Tax Rate___________________________