Problem $2-23$ Corporate Taxes $($LG$2-3)$

The Dakota Corporation had a $2023$ taxable income of $$7,700,000$ from operations after all operating costs but before $(1)$ interest

charges of $$1,400,000,$ all of which is tax deductible; $(2)$ dividends received of $$98,000,(3)$ dividends paid of $$860,000,$ and $(4)$ income

taxes $($the firm's tax rate is $21$ percent$).$

a$.$ Calculate Dakota's income tax liability.

Answer is complete but not entirely correct.

b$.$ What are Dakota's average and marginal tax rates on taxable income?

Answer is complete and correct.