Marginal versus Average Tax Rates (Refer to Table 2.7) Corporation Growth has $88,000 in taxable income, and Corporation Income has $8,800,000 in taxable income. table 2.7 What is the tax bill for each? Suppose both firms have identified a new project that will increase taxable income by $10,000. How much additional taxes will each firm pay? Is this amount the same or different?

Question 2 Not yet answered Marked out of 3.00 P Flag question Marginal versus Average Tax Rates (Refer to Table 2.7) Corporation Growth has $88,000 in taxable income, and Corporation Income has $8,800,000 in taxable income. TABLE 2.7 Corporate tax rates in percentages in 2015 (current as of September 30, 2014) Federal (%) Alberta (%) Combined (%) Basic corporations 25 All small corporations with a taxable income less than $500,000 1. What is the tax bill for each? 2. Suppose both firms have identified a new project that will increase taxable income by $10,000. How much additional taxes will each firm pay? 3. Is this amount the same or different? 15 10 11 3 14