Last year the company realized $450,000 in operating income (EBIT). Its annual interest expense is $150,000.

a) How much tax does the company owe on this income?

b) What is the average tax rate?

c) What is the marginal tax rate?

Moose Industries faces the following tax schedule: Taxable income Up to $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 Tax on Base of Bracket Percentage on Excess above Base $0 15% 7,500 25 13,750 34 22,250 39 113,900 34 3,400,000 35 5,150,000 38 6,416,667 35