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: $10,000; $81,100; $297,000; 5504,000; $1.5 million; $9.4 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? a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $10,000; $81,100; $297,000; $504,000; $1,500,000; $9.4 million, and $19.6 million The tax liability for earnings before taxes of $10,000 is $ 1,500. (Round to the nearest dollar.) The after-tax earnings on $10,000 are $ 8,500. (Round to the nearest dollar.) The average tax rate for the $10,000 in pretax earnings is 15.0 %. (Round to one decimal place.) The tax liability for earnings before taxes of $81,100 is $ 15,824. (Round to the nearest dollar.) It: 0 The after-tax earnings on $81,100 are $ 65,276 (Round to the nearest dollar.) The average tax rate for the $81,100 in pretax earnings is 19.5%. (Round to one decimal place.) The tax liability for earnings before taxes of $297,000 is $ 99,080" (Round to the nearest dollar.) The after-tax earnings on $297,000 are $ 197,920 (Round to the nearest dollar) The average tax rate for the $297,000 in pretax earnings is 33.4 %. (Round to one decimal place.) The tax liability for earnings before taxes of $504,000 is $ 171,360. (Round to the nearest dollar.) 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: $10,000; $81,100; $297,000; $504,0 $1.5 million; $9.4 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? The after-tax earnings on $504,000 are $ 332,640. (Round to the nearest dollar.) The average tax rate for the $504,000 in pretax earnings is 34.0%. (Round to one decimal place.) The tax liability for earnings before taxes of $1.5 million is $ 510,000. (Round to the nearest dollar.) The after-tax earnings on $1.5 million are $ 990,000 (Round to the nearest dollar.) The average tax rate for the $1.5 million in pretax earnings is 34.0%. (Round to one decimal place.) The tax liability for earnings before taxes of $9.4 million is $ 3,196,000 (Round to the nearest dollar.) The after-tax earnings on $9.4 million are $ 6,204,000. (Round to the nearest dollar.) The average tax rate for the $9.4 million in pretax earnings is 34.0%. (Round to one decimal place.) The tax liability for earnings before taxes of $19.6 million is S 6,860,000. (Round to the nearest dollar.) The after-tax earnings on $19.6 million are $ 12,740,000. (Round to the nearest dollar.) The average tax rate for the $19.6 million in pretax earnings is 35.0%. (Round to one decimal place.) 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 . . 40 a 40 35 M 30- Average Tax Rate (*) Average Tax Rate (%) 25 20 20- 15 15 104 10- 0 2.000 4.000 6,000 8,000 10.000 Pretax income (5000) 2.000 4.000 5.000 8.000 10.000 Pretax Income (5000) Q OD 40 40 35 35- 30 30- Average Tax Rate (95) Average Tax Rate(%) 20 15 More Info - (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 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) + + + + + Print Done axeamings is 34.0%. (Round to one decimal place.) 35- 30 ER 25 8 20 34 15 15 3995 2.000 4.000 6,000 8.000 10,000 Pretax Income (5000) 10 0 2.000 4,000 6,000 8,000 10,000 Pretax income (5000) 35% What generalization can be made concerning the relationship between these variables? (Select from the drop-down menu.) 385 This chart demonstrates the "progressive" nature of the US, tax code in that income tax rates increase dramatically as the level of income rities. The top corporate average tax rate is