Corporate tax rates are shown below: Taxable Income $0-$50,000 $50,001-$70,000 $70,001-$100,000 $100,001-$150,000 $150,001-$300,000 $300.001-$500,000 Over $500,000 Marginal Tax Rate 10% 15% 25% 30% 40% 35% 38% A company earned profits of $100,000. Calculate the following (show ALL calculations) (i) Calculate the Average Tax rate (6pts) (ii) What is the marginal tax rate? (2pts)

Corporate tax rates are shown below. A company earned profits of $100,000. Calculate the following (show ALL calculations) (i) Calculate the Average Tax rate (6pts) (ii) What is the marginal tax rate? (2pts)