Given the U.S. Corporate Tax Rate Schedule shown below, and a corporation that generates a taxable income of $10,400,000 in 2012,

What is the marginal tax rate?

Marginal tax rate

35%

What is the average tax rate _______%

EXHIBIT 10.6 U.S. Corporate Tax Rate Schedule in 2012 Just like the tax system for individuals, the tax system for corporations in the United States is progressive, with marginal tax rates ranging from 15 percent to as high as 39 percent. Taxable income More But Not Than More Than Tax Owed $O $50,000 15% of amount beyond $0 $50,000 $75,000 $7,500 + 25% of amount beyond $50,000 $75,000 $100,000 $13,750 + 34% of amount beyond $75,000 $100,000 $335,000 $22,250 + 39% of amount beyond $100,000 $335,000 $10,000,000 $113,900 + 34% of amount beyond $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% of amount beyond $10,000,000 $15,000,000 $18,333,333 $5,150,000 + 38% of amount beyond $15,000,000 $18,333,333 35% on all income