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Marginal and average tax rates using the tax rate schedule given here, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax
Marginal and average tax rates using the tax rate schedule given here, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $13,300; $81,900; $295,000; $500,000; $1.1 mlion; $1.7 million; and $1.9 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? a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $13,300; $81,900; $295,000; $500,000; $1,100,000; $1.7 million; and $1.9 million. The tax liability for earnings before taxes of $13,300 is $1,406. (Round to the nearest dollar.) The after-tax earnings on $13,300 are $ 11894. (Round to the nearest dollar.) The average tax rate for the $13,300 in pretax earnings is 10.6%. (Round to one decimal place.)
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