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I am having trouble with question 4 and question 5 im completely confused . following 1) Explain why corporations face a double taxation problem? For

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I am having trouble with question 4 and question 5 im completely confused .
image text in transcribed
following 1) Explain why corporations face a double taxation problem? For corporations, how are the marginal and average tax rates related? 2) Define agency problems, and describe how they give rise to agency costs. Explain how a firm's corporate governance structure can help avoid agency problems. 3) How can the firm structure management compensation to minimize agency problems? 4) Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2018, the firm earned $92,500 before taxes. a) Calculate the firm's tax liability. b) How much are Tantor Supply's 2018 after-tax earnings? c) What was the firm's average tax rate, based on your findings in part a? d) What was the firm's marginal tax rate, based on your findings in part a? 5) Using the tax rate schedule given in Table 1.2, (you have this on the slides) perform the following: a) Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $10,000;$80,000;$300,000;$500,000; $1 million; \$1.5 million; and \$2 million. b) Plot the average tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). What generalization can be made concerning the relationship between these variables

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