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Dalto Corporation is located in a state that taxes corporations at 4 % of the first $ 5 0 , 0 0 0 of taxable

Dalto Corporation is located in a state that taxes corporations at 4% of the first $50,000 of taxable income plus 7% of any taxable income above $50,000. Corporate income taxes paid to a state are deductible in determining a corporation's federal income tax liability. The corporate federal income tax rate is a flat 21% of corporate taxable income. Dalto earned $250,000 of income that is taxable by both the state and federal governments.
Required:
a. Determine Dalto's state income tax obligation.
b. Determine Dalto's federal income tax obligation.
c. Determine the combined (federal and state) income tax total that Dalto has to pay.
d. If Dalto were to add a new product line that increased its taxable income by $10,000, how much extra income tax (state plus federal) would Dalto have to pay?
e. What is the appropriate combined marginal tax rate that Dalto should use to evaluate new projects that would increase its taxable income?
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