Question
(Corporate income tax)The Robbins Corporation is an oil wholesaler. The firm's sales last year were 1.06 million, with the cost of goods sold equal to
(Corporate income tax)The Robbins Corporation is an oil wholesaler. The firm's sales last year were 1.06 million, with the cost of goods sold equal to 650,000. The firm paid interest of 206,000 and its cash operating expenses were 102000 . Also, the firm received 40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only 13,000 in dividends to its stockholders. Depreciation expense was 52,000. Use the corporate tax rates shown in the popup window, LOADING..., to compute the firm's tax liability. What are the firm's average and marginal tax rates?
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