Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition Lawrence J. Gitman

P21 Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2013, the firm earned $92,500 before taxes.

1. Calculate the firms tax liability using the corporate tax rate schedule given in Table 2.1.
2. How much are Tantor Supplys 2013 after-tax earnings?
3. What was the firms average tax rate, based on your findings in part a?
4. What was the firms marginal tax rate, based on your findings in part a? (Please provide me with a detailed calculation for my study purpose, thank you!)

Tax calculation (Marginal rate x amount over base bracket) Range of taxable income Base tax + $ X X X amount over amount over amount over 0 to 50,000 to 75,000 to 100,000 to 335,000 to 10,000,000 to 15,000,000 to Over 18,333,333 $ 50,000 $ 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 amount over 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 0) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333) amount over amount over amount over X amount over