Last year Sanderson, Inc. had sales of $3.9 million. The firm's cost of goods sold came to $2.7 million, its operating expenses excluding depreciation of $97,000 were $395,000, and the firm paid $152,000 in interest on its bank loans. Also, the corporation received $55,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $28,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window to:

1. calculate the corporation's tax liability

2. What are the firm's average and marginal tax rates?

firm's average and marginal tax rates? \begin{tabular}{l|l} Taxable Income & Marginal Tax Rate \\ $0$50,000 & 15% \\ \hline$50,001$75,000 & 25% \\ \hline$75,001$100,000 & 34% \\ \hline$100,001$335,000 & 39% \\ \hline$335,001$10,000,000 & 34% \\ \hline$10,000,001$15,000,000 & 35% \\ \hline$15,000,001$18,333,333 & 38% \\ \hline Over $18,333,333 & 35% \\ \hline \end{tabular}