P2-1 Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2010 the firm earned $ 92,500 before taxes. a. Calculate the firm's tax liability using the corporate tax rate schedule given in the Lecture 2 PowerPoint. b. How much are Tantor Supply's 2010 after-tax earnings? c. What was the firm's average tax rate, based on your findings in part a? d. What is the firm's marginal tax rate, based on your findings in part a? P2-5 Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $ 40,000 for the current period. Assuming an ordinary tax rate of 40%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $ 10,000 in interest. b. The firm pays $ 10,000 in preferred stock dividends.