(for $250,000 taxable income only)

53 CHAPTER 2 The Financial Market Environment Average corporate tax rates Using the corporate tax rate schedule given in Table 2.1, perform the following a. Calculate the tax liability, after-tax earnings, and average tax rates for the fol- P2-2 lowing levels of corporate earnings before taxes: $10,000; $80,000; $300,000; $500,000; $1.5 million; $10 million; and $20 million. 53 CHAPTER 2 The Financial Market Environment Average corporate tax rates Using the corporate tax rate schedule given in Table 2.1, perform the following a. Calculate the tax liability, after-tax earnings, and average tax rates for the fol- P2-2 lowing levels of corporate earnings before taxes: $10,000; $80,000; $300,000; $500,000; $1.5 million; $10 million; and $20 million