Sales for J. P. Hulett Inc. during the past year amounted to $4.1 million. Gross profits totaled $1.08 million, and operating and depreciation expenses were $503,000 and $347,000, respectively. Dividend income for the year was $11,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, LOADING... , to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?

Taxable income Marginal 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%