Inky Inc. reported the following financial information in 2015. $600,000 $370,000 Operating income (EBIT) Interest Dividends from Printers Inc. not included in operating income (Inky owns 4% of Printers) Dividends paid to Inky's stockholders $ 20,000 $ 20,000 Corporate Income Tax Schedule Income ($) Rate (%) 0 - 50,000 50,000 - 75,000 75,000 - 100,000 100,000 - 335,000 335,000 - 10,000,000 10,000,000 - 15,000,000 15,000,000 - 18,333,333 Over 18,333,333 See the table below for the percentage exepmtions of dividends paid by corporations. Ownership 80 Exemption 70% 80% 100% a. What is Inky's tax liability? Round the answer to the nearest dollar. b. What is Inky's marginal tax rate? c. What is Inky's average tax rate? Round the answer to 1 decimal place. % d. Explain why only one of the rates in b and c is relevant for financial decisions. Select the correct answer below. 1. The marginal tax rate is relevant in financial decisions involving incremental income because such income is generally taxed at that rate. II. The average tax rate is relevant in financial decisions involving incremental income because its calculation includes dividends to stockholders. III. The marginal tax rate is relevant in financial decisions involving incremental income because it helps to avoid double taxation of earnings. olving incremental income because it is based on a more efficient progressive tax system as opposed to the marginal tax rate