Goliath Supplies Inc. (a C Corp) reports total net income of $500,000 in 2020. This includes $25,000 of income from 3.00% Jackson County municipal bonds (muni bond interest is not taxable). Thus, the Corporations taxable income is equal to $475,000. There is no tax rate

1. What is Goliaths tax liability for 2020?
2. What are Goliaths marginal, average and effective tax rates, respectively?
3. If equivalent taxable bonds pay 4.50% interest, what is the implicit tax rate for the Jackson County bonds? (see handout for Implicit Tax Rate)
4. Did Goliath make a good choice to invest in the municipal bonds instead of the taxable bonds?