Average corporate tax rates Using the corporate tax rate schedule given here , perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $10,700; $81,200; $297,000; $499,000; $1.5 million; $9.9 million and $19.6 million. b. Plot the average tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). What generalization can be made concerning the relationship between these variables? Corporate Tax Rate Schedule + + + + Range of taxable income $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 Base tax $0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 Tax calculation (Marginal rate x amount over base bracket) (15% x amount over $0) (25% x amount over 50,000) (34% x amount over 75,000) (39% x amount over 100,000) (34% x amount over 335,000) (35% x amount over 10,000,000) (38% x amount over 15,000,000) (35% x amount over 18,333,333) + + + + +