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Part $1$

$($Corporate income$$ tax$)$Sales for J$.$ P$.$ Hulett Inc. during the past year amounted to $ $3\mathrm{.}8$ million. Gross profits totaled $ $1\mathrm{.}08$million$,$ and operating and depreciation expenses were $ $506,000$ and $ $352,000,$ respectively. Dividend income for the year was $ $13,000,$ which was paid by a firm in which Hulett owns $85$ percent of the shares. Use the corporate tax rates shown o Comcute the$$ corporation's tax liability. What are the$$ firm's average and marginal tax$$ rates?Taxable Income

$$Marginal 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$

$38\%$

$$Over$$ $$18,333,333$

$35\%$