Problem 25

Intro

A company has taxable income of $6,000,000. The corporate tax rates are as follows:

Taxable income ($)		Tax rate
0-	50,000	15%
50,001-	75,000	25%
75,001-	100,000	34%
100,001-	335,000	39%
335,001-	10,000,000	34%
10,000,001-	15,000,000	35%
15,000,001-	18,333,333	38%
18,333,334+		35%

Attempt 2/10 for 8 pts.

Part 1

What is the total tax bill for the company, i.e., how much does the company have to pay in taxes (in $)?

Part 2

What is the company's average tax rate?