B D E Taxable Income Tax Liability 3 A 1 Suppose your firm earns $18 million in net income. 2 What is the firm's tax liability? 3 What is the firm's marginal tax rate? 7 Calculate the average tax rate. 5 5 Tax Liability on $18,000,000 income 3 Corporate Tax Rates Taxable income Levels _0 $ $ 50,000 1 $ 50,001$ 75,000 2 $ 75,001 $ 100,000 3 $ 100,001 $ 335,000 -4 $ 335,001 $ 10,000,000 5 $ 10,000,001 $ 15,000,000 -6 $ 15,000,001 $ 18,333,333 7 $ 18,333,334 -8 9 Average Rate = co Marginal Rate = 1 Tax Rate 15% 25% 34% 39% 34% 35% 38% 35%