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Refer to the corporate marginal tax rate information in Table 2.3. b-1 Compute the average tax rate for a corporation with exactly $335,001 in taxable

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Refer to the corporate marginal tax rate information in Table 2.3. b-1 Compute the average tax rate for a corporation with exactly $335,001 in taxable income. (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number, e.g., 32.) Average tax rate 34 % b-2 What is the average tax rate for a corporation with exactly $18,333,334? (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number, e.g., 32.) Average tax rate 35 % c. The 39 percent and 38 percent tax rates both represent what is called a tax "bubble. Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $188,000. What would the new 39 percent bubble rate have to be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Bubble rate 58 % Tax Rate 15% 0- 25 34 Taxable income $ 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 335,000 335,001-10,000,000 10,000,001 - 15,000,000 15,000,001 -18,333,333 18,333,334+ 39 34 35 38 35

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