It says that Sarah will be subject to 39.6% marginal tax rate in the sole proprietorship business. because she has income from other sources which puts her in the high tax bracket in the individual portion. am i supposed to multiply it with taxable income amount for each year individually (year 1 - 5)? i don't know what to do with 39.6%. please help.

Sarah plans to invest $1 million in a business venture that will last five years. She is debating whether to operate the business as a C corporation or a sole proprietorship. If a C corporation, she will liquidate the corporation at the end of the five-year period. She expects the business to generate taxable income as follows: Taxable income $ 40,000 70,000 90,000 150,000 350,000 If incurred in corporate form, these taxable income amounts will be subject to the corporate tax rate schedule. If in proprietorship form, they will be subject to Sarah's 39.6% marginal tax rate because she has income from other sources that puts her in the top individual tax bracket. Any capital gain upon corporate liquidation will be taxed at 23.8% (the 20% maximum capital gain rate plus the 3.8% rate on net investment income). Assume that Sec. 1202 does not apply. Sarah plans to invest $1 million in a business venture that will last five years. She is debating whether to operate the business as a C corporation or a sole proprietorship. If a C corporation, she will liquidate the corporation at the end of the five-year period. She expects the business to generate taxable income as follows: Taxable income $ 40,000 70,000 90,000 150,000 350,000 If incurred in corporate form, these taxable income amounts will be subject to the corporate tax rate schedule. If in proprietorship form, they will be subject to Sarah's 39.6% marginal tax rate because she has income from other sources that puts her in the top individual tax bracket. Any capital gain upon corporate liquidation will be taxed at 23.8% (the 20% maximum capital gain rate plus the 3.8% rate on net investment income). Assume that Sec. 1202 does not apply