Question
(Corporate income tax) G. R. Edwin Inc. had sales of $6.05 million during the past year. The cost of goods sold amounted to $2.8 million.
(Corporate income tax) G. R. Edwin Inc. had sales of $6.05 million during the past year. The cost of goods sold amounted to $2.8 million. Operating expenses totaled $2.58 million, and interest expense was $22,000. Use the corporate tax rates shown below, to determine the firm's tax liability. What are the firm's average and marginal tax rates?
Taxable Income | Marginal Tax Rate |
$0$50,000 | 15% |
$50,001$75,000 | 25% |
$75,001$100,000 | 34% |
$100,001$335,000 | 39% |
$335,001$10,000,000 | 34% |
$10,000,001$15,000,000 | 35% |
$15,000,001$18,333,333 | 38% |
Over $18,333,333 | 35% |
to calculate the firm's tax liability. What are the firm's average and marginal tax rates?
The firms tax liability for the year is $___(Round to the nearest dollar.)
The firms average tax rate is ___%. (Round to two decimal places.)
The firms marginal tax rate is ___%. (Round to the nearest integer.)
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