Amherst Machine is a manufacturer of tools. How much corporate income tax must they pay on $1600000 in income. Use the tax rates in Chapter 2's Workshop 2.1 to answer this question.

The first $20,000 of income (between $0 and $20,000) Tax Rate = 10%

The next $60,000 of income (between $20,000 and $80,000) Tax Rate = 12%

The next $85,000 of income (between $80,000 and $165,000) Tax Rate = 22%

The next $150,000 of income (between $165,000 and $315,000) Tax Rate = 24%

The next $85,000 of income (between $315,000 and $400,000) Tax Rate = 32%

The next $200,000 of income (between $400,000 and $600,000) Tax Rate = 35%

All additional income over $600,000 Tax Rate = 37%