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Determine Marginal Tax Rate and the Tax on Operating Profit Amgen Inc. reported the following in its tax footnote to its 2018 financial statements. Use

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Determine Marginal Tax Rate and the Tax on Operating Profit Amgen Inc. reported the following in its tax footnote to its 2018 financial statements. Use this information to answer the requirements. The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows: 2018 2017 2016 21.0% 35,0% 35,0% Federal statutory tax rate 2017 Tax Act, net repatriation tax Foreign earnings 70.7 2017 Tax Act, net deferred tax remeasurement (4.3) (15.8) (15,5) (6.9) (2.5) (2.2) (2.3) (1.8) 1.2 0.6 0.5 Credits, Puerto Rico Excise Tax 2017 Tax Act, net impact on intercompany sales Interest on uncertain tax positions Credits, primarily federal R&D Share-based payments Other, net Effective tax rate (0.8) (0.6) (0.7) (0.7) (1.3) (0.2) (0.5) (0.7) 12.1% 79.4% 15.7% a. Determine the tax rate that we should use to compute tax on operating profit for each year 2018, 2017, and 2016 2018 2017 2016 Tax rate 0% 0 % 0 % b. Compute the amount of tax on net operating profit for 2018. The company reported the following items on its 2018 income statement (5 millions), $1,392 Interest expense, net Interest and other income, net 674 Provision for income taxes 1.151 Round answer to the nearest whole number. $0 million

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