Marginal corporate tax rates. Using the corporate tax rate schedule given here, perform the following: a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $ 14, 200; $ 60, 900; $ 88, 600; $ 205, 000; $ 403, 000; $ 1.4 million; and; $ 20.4 million. b. Plot the marginal tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). Explain the relationship between these variables. a. The marginal tax rate for earnings before taxes of $ 14, 200 is [ ]

Corporate Tax Rate Schedule Range of taxable income $0 to $50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 Base tax $0 7,500 13.750 22.250 113,900 3,400,000 5.150,000 6,416,667 + + + + + + + + + Tax calculation (Marginal rate x amount over base bracket) (15% X amount over $0) (25% X amount over 50,000) (34% X amount over 75,000) (39% X amount over 100,000) (34% X amount over 335,000) (35% X amount over 10,000,000) (38% X amount over 15,000,000) (35% X amount over 18,333,333) Corporate Tax Rate Schedule Range of taxable income $0 to $50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 Base tax $0 7,500 13.750 22.250 113,900 3,400,000 5.150,000 6,416,667 + + + + + + + + + Tax calculation (Marginal rate x amount over base bracket) (15% X amount over $0) (25% X amount over 50,000) (34% X amount over 75,000) (39% X amount over 100,000) (34% X amount over 335,000) (35% X amount over 10,000,000) (38% X amount over 15,000,000) (35% X amount over 18,333,333)