Corporation A has $86078 in taxable income, and Corporation B has $2.3 million in taxable income. Suppose both firms have identified a new project that will increase taxable income by $12526. How much more will Corporation B pay in additional taxes than will Corporation A? Use the tax rates in Table 2.3.

TABLE 2.3 Corporate Tax Rates Taxable Income Tax Rate 0 50,000 50,001-75,000 75,001100,000 00,001335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 15% 25 34 39 34 35 38 35 18,333,334+