Average corporate tax rates Using the corporate tax rate schedule given here i, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $8,000; $80,100; $296,000; $503,000; $1.2 million; $9.4 million; and $19.5 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 (15% (25% (34% (39% (34% (35% (38% (35% Tax calculation (Marginal rate x amount over base bracket) X amount over $0) X amount over 50,000) x amount over 75,000) x amount over 100,000) x amount over 335,000) X amount over 10,000,000) X amount over 15,000,000) x amount over 18,333,333) + + + + +